Under what scenario could fiscal policy make a recession even worse?
select one:
a. if tax cuts are not evenly distributed across income groups.
b. if the multiplier is bigger than 1
c. if there is no crowding out of private spending
d. if deficit financed fiscal policy increases the national debt to the point it scares investors away and decreases spender confidence
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Ответ:
The correct answer is letter "A": If tax cuts are not evenly distributed across income groups.
Explanation:
Fiscal policy refers to the combined governmental decisions regarding a country's taxing and spending. The term fiscal policy is associated with British economist John Maynard Keynes (1883-1946) who believed governments should influence macroeconomic productivity levels. Though, it could be a trap if it is not allocated correctly among different income groups. Economies such as Brazil, for instance, have allocated higher taxes for low-income people creating economic disparity.
Ответ:
cuz
Explanation: