Question

Question 91 pts

One side argues that expansionary fiscal policy just replaces private sector spending while the other side argues that it enhances private sector spending. Which of the following is true?

conservatives argue the first which is crowding in; liberals argue the second which is crowding out.

liberals argue the first which is crowding out; conservatives argue the second which is crowding in.

conservatives argue the first which is crowding out; liberals argue the second which is crowding in.

liberals argue the first which is crowding in; conservatives argue the second which is crowding out.

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Question 101 pts

Fiscal policy deals with each of the following, except

the money supply.

government spending.

taxation.

the federal budget.

Answer 1

SInce the first one decreases private spendings, it is crowding out and second one increases private spending, it is crowding out and liberals mostly argue about this positive side unlike the conservatives.

Therefore (c) conservatives argue the first which is crowding out; liberals argue the second which is crowding in is the answer

Fiscal Policy deals with the taxation, government spending, federal budget and all other income and expenditure norms.

Therefore (a) money supply is the answer