Expansionary Fiscal Policy Is Ineffective If

question 80

Multiple Choice

Expansionary fiscal policy is ineffective if

• A) there are idle resources in the economy.
• B) the MPC is less than 0.60.
• C) the government has a budget surplus.
• D) there is complete crowding out.
• E) a and d

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Definitions:

Confrontational

A term not directly related to psychology; however, if in context, it could describe an approach or method that directly challenges a person's beliefs or behaviors.

Structured Interview

A standardized method of interviewing where all candidates are asked the same set of predefined questions in the same order to ensure consistency.

Reliability of Results

The degree to which the outcome of a test, experiment, or measurement can be depended on to be consistent over repeated trials.

Freedom of Response

The degree to which respondents can provide answers to questions or tasks without being constrained by a predetermined set of options, allowing for more varied and potentially insightful responses.