Author Question: The major weakness of fiscal policy as a way of affecting the economy is that it ______. (Read 40 times)

Mscarter · **on:** Mar 9, 2022

Question 1

The heart of Keynesianism is that the government should ______.
◦ run deficits during recessions and surpluses when the economy is doing well
◦ run surpluses during recessions and deficits when the economy is doing well
◦ run surpluses all the time
◦ run deficits all the time

Question 2

The major weakness of fiscal policy as a way of affecting the economy is that it ______.
◦ depends on consumer behavior
◦ depends on decisions made by foreign governments
◦ requires politicians to make redistributive taxing and spending decisions
◦ requires changes to be made in very narrow increments

sin · **Reply #1 on:** Mar 9, 2022

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