Many Economists Argued Against Using Discretionary Fiscal Policy During the Great

question 10

True/False

Many economists argued against using discretionary fiscal policy during the Great Recession because interest rates were very low and fiscal policy is ineffective when interest rates are near zero.

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Definitions:

MACRS Depreciation

Modified Accelerated Cost Recovery System; a method of depreciation used for tax purposes in the United States that allows for faster expense deductions.

Working Capital

The difference between a company’s current assets and current liabilities, used to fund the company's day-to-day operations.

Marginal Tax Rate

The rate at which the last dollar of income is taxed, indicating the percentage of tax applied to your next dollar of income.

Net Investment

The total amount spent by a company or economy on capital assets, minus depreciation. This indicates how much is being spent on new or replacement assets.