A serious problem with fiscal policy is that a. All countries borrow heavily from foreigners, which involves great risks b. Fiscal policymakers are independent from political pressures and hence often ignore what would be the common good of the people c. The temptation for politicians to win votes by overspending is too great and is often not controlled d. The policy, once implemented, usually has no impact on the
1. A serious problem with fiscal policy is that
a. All countries borrow heavily from foreigners, which involves great risks
b. Fiscal policymakers are independent from political pressures and hence often ignore what would be the common good of the people
c. The temptation for politicians to win votes by overspending is too great and is often not controlled
d. The policy, once implemented, usually has no impact on the
economy
2. It is probably fair to say that
a. The very high government debt at the present time is a result of fiscal policymakers (politicians) using their tools inappropriately
b. The very high government debt at the present time is a result of the expansive policies enacted during a deep economic crisis
c. The very high government debt at the present time is a result of
automatic stabilizers which caused large deficits during the crisis
d. All of these factors have contributed to the large government debt
Step by step
Solved in 2 steps
