Question

Savings is always good for the economy. Automatic stabilizers work on the economy without new laws...

Savings is always good for the economy.

Automatic stabilizers work on the economy without new laws being passed.

Recognition lag is usually the largest time delay for fiscal policy.

Crowding in is the opposite of crowding out.

Running a deficit decreases the national debt.

The Keynesians felt automatic stabilizers were sufficient to stabilize the economy.

Savings is the only source of leakage in the basic Keynesian multiplier.

U.S. unemployment benefits cover most unemployed workers.

Unemployment benefits and corporate income tax are examples of automatic stabilizers.

Fiscal policy can change Aggregate Demand and real GDP in the Keynesian model.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Savings is always good for the economy.
False
Paradox of thrift states that during recession, savings is not good for the economy.

Automatic stabilizers work on the economy without new laws being passed.
True
Automatic stabilizers dampen the fluctuations in GDP

Crowding in is the opposite of crowding out.
True
Crowding in means increase in private investment due to governmetn spending.

Running a deficit decreases the national debt.
False
Running a deficit increases national debt

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
23-The relationship between households' planned consumption expenditures and households' level of disposable real income is called...
23-The relationship between households' planned consumption expenditures and households' level of disposable real income is called the investment function. the savings function. the household aggregate demand function. the consumption function. 25-Of the relationships below, which is the least stable? Investment Net exports Consumption Saving 28-In the multiplier process successive rounds of spending get smaller and smaller because the mps equals 0. mps is negative but less than -1. mps is positive and equals 1. mps is positive and less than...
2) A spike in “All Other Outlays” of the federal government in 2009 was due to:...
2) A spike in “All Other Outlays” of the federal government in 2009 was due to: a) an increase in the financial aid given to Greece earlier that year. b) an increase in the expenditures on Social Security and Medicare. c) the fiscal stimulus package passed earlier that year. d) a sudden increase in military expenditure as a result of the war in Iraq. e) an increase in the national debt earlier that year. 3) In 2016, welfare spending accounted...
Which one of the following statements is true? Select one: a. Traditional Keynesian analysis indicates that...
Which one of the following statements is true? Select one: a. Traditional Keynesian analysis indicates that increases in government purchases are a more potent tool than decreases in taxes. b. According to Keynesians, fiscal policy is the first line of defense against economic downturns. c. Advocates of sacrifice ration claim that a zero-inflation target imposes only small costs on society. d. Sacrifice ration implies that a credible commitment to reducing inflation can lower the costs of disinflation by inducing a...
1. Which of the following will not occur in response to a decrease in the cash...
1. Which of the following will not occur in response to a decrease in the cash rate target set by the RBA (all else constant). Group of answer choices A, The Australian dollar will depreciate. B,Investment spending will increase. C, Government spending will increase. D, Interest rates across the economy will tend to decrease. 2. In a fractional reserve banking system, assuming away various complexities such as taxes, imports, and cash savings, the simple deposit multiplier can be used to...
1. The Federal Reserve Act says that the Fed must try to achieve​ ______. A. a...
1. The Federal Reserve Act says that the Fed must try to achieve​ ______. A. a balanced budget B. maximum​ employment, stable​ prices, and moderate​ long-term interest rates C. a stable U.S. dollar on foreign exchange markets and moderate​ long-term and​ short-term interest rates D. an economic environment in which investment in U.S. stock and money markets is encouraged The Federal Reserve Act says that the Fed must use​ ______ to achieve its objectives. A. bank reserves B. commercial banks...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT