Fiscal Policy During Periods of Relatively Low Unemployment and Low

question 76

Multiple Choice

Fiscal policy during periods of relatively low unemployment and low inflation have

• A) little effect due to time lags and the crowding-out effect.
• B) significant effect due to the timely intervention of the president and congress.
• C) significant effect because the changes in fiscal policy gives investors confidence in the economy.
• D) little effect because the global market makes up fifty percent of aggregate spending.