All of the Following Make the Use of Fiscal Policy

question 10

Multiple Choice

All of the following make the use of fiscal policy less attractive except

• A)expansionary fiscal policy tends to cause inflation and offsets some of the increased consumer spending.
• B)that it cannot be effective,unless it is accommodated with expansionary monetary policy.
• C)the substantial margin of error in the value of the multiplier.
• D)the legislative lag,which is the time it takes for Congress and the President to pass and implement the measure.
• E)the crowding out effect,which is the decrease in private spending that occurs due to increased government spending.

---

Definitions:

GDP

Gross Domestic Product is the summed monetary value of all ultimate goods and services generated inside a country's territory in a defined interval.

Per Capita GDP

A metric that measures a country's economic output per person, dividing the GDP of a country by its population; often used to compare economic prosperity across countries or regions.

Population

The total number of people inhabiting a particular country, area, or place.

Psychological Strain

Psychological strain refers to the stress or tension experienced by individuals due to various psychological pressures or challenges.