Increasing public spending to correct a recession below pessimistic expectations is; a. Not own because the actors reveal that aggregate demand is maintained by artificial stimulus b. Not own because the public debt is getting bigger, which reinforces the pessimism c. Suitable because the instrument is not directly dependent on the actors' expectations d. Own because it reduces the importance of the private markets that cause recessions

Increasing public spending to correct a recession below pessimistic expectations is; a. Not own because the actors reveal that aggregate demand is maintained by artificial stimulus b. Not own because the public debt is getting bigger, which reinforces the pessimism c. Suitable because the instrument is not directly dependent on the actors' expectations d. Own because it reduces the importance of the private markets that cause recessions

Macroeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506756

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter12: Fiscal Policy, Incentives, And Secondary Effects

Section: Chapter Questions

Problem 5CQ

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