Which Statement Is NOT a Major Limit to the Effectiveness

question 186

Multiple Choice

Which statement is NOT a major limit to the effectiveness of fiscal policy?

• A) A single increase in government spending may not be enough to stimulate the economy.
• B) The crowding out effect is transmitted through financial markets.
• C) Fiscal policy is not very effective in combating supply side shocks.
• D) A multiplier effect is associated with changes in spending and taxation.

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Definitions:

Mandibles

Jaw or jawbone, specifically the lower jaws in vertebrates, but in arthropods, they refer to either of a pair of mouthparts used for biting and chewing.

Pedipalps

Appendages located near the mouth of arachnids, such as spiders, used for feeding and sometimes reproduction.

Jointed Appendages

Limbs or structures in certain organisms, like arthropods, that are segmented and connected by joints, allowing for complex movement.

Annelids

A phylum of invertebrate worms characterized by segmented bodies and includes earthworms, ragworms, and leeches.