Solved

If Consumption Growth Decreases,the Government Spending "Multiplier Effect" Means That G⃗\vec { G }

Question 167

Multiple Choice

If consumption growth decreases,the government spending "multiplier effect" means that in order to counter the recession:


A) the government cannot use fiscal policy.
B) the government is forced to use both tax cuts and increases in
G⃗\vec { G } .
C) fiscal policy needs to raise
G⃗\vec { G } by less than the decrease in
C⃗\vec { C } .
D) fiscal policy needs to raise
G⃗\vec { G } by more than the decrease in
C⃗\vec { C } .

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions