7 Which of the following is a reason for federal deficit spending?O The balanced budget multiplier.O To solve the problem of a liquidity trap.O Politics.O All of the above. Which of the following can be an impediment to effective discretionary fiscal policies?O Not knowing the multiplier.O Lag effects.O Insufficient knowledge and understanding on the part of the policy makers.O All of the above.Question 6A problem with using monetary policies to fight an unemployment problem is that the Fed cannot force people to borrow money.O TrueO False

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Which of the following is a reason for federal deficit spending? O The balanced budget multiplier. O To solve the problem of a liquidity trap. O Politics. All of the above.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter24: Fiscal Policy

Section: Chapter Questions

Problem 4P

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Question

Which of the following is a reason for federal deficit spending?
O The balanced budget multiplier.
O To solve the problem of a liquidity trap.
O Politics.
O All of the above.

Which of the following can be an impediment to effective discretionary fiscal policies?
O Not knowing the multiplier.
O Lag effects.
O Insufficient knowledge and understanding on the part of the policy makers.
O All of the above.
Question 6
A problem with using monetary policies to fight an unemployment problem is that the Fed cannot force people to borrow money.
O True
O False

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