Which of the Following Limits the Effectiveness of Fiscal Policy

question 183

Multiple Choice

Which of the following limits the effectiveness of fiscal policy?

• A) crowding out
• B) the multiplier effect
• C) the big bucket effect
• D) free riding behavior

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Definitions:

Adjusted Trial Balance

A list of all the accounts and their balances after adjusting entries are made, used for preparing financial statements.

Revenue Accounts

Accounts used in accounting to record the company's income from its operations or activities.

Expense Accounts

Expense accounts track the costs incurred by a business in the course of its operations, such as utilities, rent, and payroll.

Adjusted Trial Balance

A list of all accounts and their balances after adjustments, used in the preparation of financial statements.