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To the Extent That a Direct Expenditure Offset Results from an Expansionary

Question 43

Multiple Choice

To the extent that a direct expenditure offset results from an expansionary fiscal policy,


A) the stimulative effect will be less than anticipated.
B) the stimulative effect will be more than anticipated.
C) the fiscal policy will not be discretionary.
D) the time lags associated with the implementation of fiscal policy will shorten.

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