To the Extent That a Direct Expenditure Offset Results from an Expansionary

question 43

Multiple Choice

To the extent that a direct expenditure offset results from an expansionary fiscal policy,

• A)the stimulative effect will be less than anticipated.
• B)the stimulative effect will be more than anticipated.
• C)the fiscal policy will not be discretionary.
• D)the time lags associated with the implementation of fiscal policy will shorten.