7 Which of the following is a reason for federal deficit spending?O The balanced budget multiplier.O To solve the problem of a liquidity trap.O Politics.O All of the above. Which of the following can be an impediment to effective discretionary fiscal policies?O Not knowing the multiplier.O Lag effects.O Insufficient knowledge and understanding on the part of the policy makers.O All of the above.Question 6A problem with using monetary policies to fight an unemployment problem is that the Fed cannot force people to borrow money.O TrueO False

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Which of the following is a reason for federal deficit spending? O The balanced budget multiplier. O To solve the problem of a liquidity trap. O Politics. All of the above.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Which of the following is a reason for federal deficit spending?
O The balanced budget multiplier.
O To solve the problem of a liquidity trap.
O Politics.
O All of the above.

Which of the following can be an impediment to effective discretionary fiscal policies?
O Not knowing the multiplier.
O Lag effects.
O Insufficient knowledge and understanding on the part of the policy makers.
O All of the above.
Question 6
A problem with using monetary policies to fight an unemployment problem is that the Fed cannot force people to borrow money.
O True
O False

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