Question 22 When is fiscal policy more effective at stimulating real GDP? When the marginal propensity to consumer is higher When the economy is in a liquidity trap When the economy has substantial "slack" or excess capacity, such as unemployed workers All of the other answers are correct.

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Question 22
When is fiscal policy more effective at stimulating real GDP?
When the marginal propensity to consumer is higher
When the economy is in a liquidity trap
When the economy has substantial "slack" or excess capacity, such as unemployed workers
All of the other answers are correct.
Transcribed Image Text:Question 22 When is fiscal policy more effective at stimulating real GDP? When the marginal propensity to consumer is higher When the economy is in a liquidity trap When the economy has substantial "slack" or excess capacity, such as unemployed workers All of the other answers are correct.
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