The Reason That Fiscal Policy Is Ineffective During a Recession

question 9

Multiple Choice

The reason that fiscal policy is ineffective during a recession is that

• A)an expansionary fiscal policy will lead to higher interest rates,appreciation of exchange rate,and a reduction in net exports.
• B)an expansionary fiscal policy will lead to lower interest rates,depreciation of exchange rate,and an increase in net exports.
• C)an expansionary fiscal policy will lead to lower interest rates,appreciation of exchange rate,and a reduction in net exports.
• D)an expansionary fiscal policy will lead to higher interest rates,appreciation of exchange rate,and an increase in net exports.

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Definitions:

Self-Contradictory Claims

Statements that contain a logical inconsistency or contradiction within themselves.

Self-Contradictory Claim

A statement that inherently contains contradictory elements or assertions, making it logically impossible.

Healthy Sense

A state of holistic well-being encompassing physical, mental, and emotional health.

Skepticism

The practice of questioning the validity or authenticity of certain knowledge claims without taking them at face value.