Describe some of the potential problems with using expansionary ...

[123654777]

Describe some of the potential problems with using expansionary fiscal policy.
 
  What will be an ideal response?

Question 2

The nation as a whole is better off from trade as long as the gains from the winners exceed the losses from the losers.
 
  Indicate whether the statement is true or false

[krakiolit]

Answer to Question 1

Expansionary fiscal policy tends to cause inflation. It is difficult to accurately measure the size of the multiplier. It can cause different effects based on its financing. It is also politically cumbersome in terms of negotiating, enacting, and implementing the changes.

Answer to Question 2

TRUE

[123654777]

Thanks for the timely response, appreciate it

[olderstudent]

Gracias!