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When a Direct Expenditure Offset Occurs with the Implementation of an Expansionary

Question 166

Multiple Choice

When a direct expenditure offset occurs with the implementation of an expansionary fiscal policy,


A) the stimulative effect will be less than expected.
B) the stimulative effect will be more than expected.
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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