The crowding-out effect of expansionary fiscal policy suggests that:?

The crowding-out effect of expansionary fiscal policy suggests that:?

Postby jianguo » Thu Apr 21, 2011 7:54 am

a. consumer and investment spending always vary inversely.
b. tax increases are paid primarily out of saving and therefore are not an effective fiscal device.
c. it is very difficult to have excessive aggregate spending in the U.S. economy.
d. increases in government spending financed through borrowing will increase the interest rate and thereby reduce investment.
jianguo
 
Posts: 72
Joined: Sat Feb 19, 2011 11:34 pm



Return to Taxes



 


  • Related topics
    Replies
    Views
    Last post

Who is online

Users browsing this forum: No registered users and 0 guests

cron