What is the role of the fiscal multiplier in economic stimulus packages, and how does it contribute to economic recovery during a recession? A) The fiscal multiplier has no impact on economic stimulus packages. B) The fiscal multiplier measures the impact of government spending on the economy; a multiplier greater than 1 indicates that government spending can stimulate economic activity. C) The fiscal multiplier is the amount of money saved by the government through efficient spending. D) The fiscal multiplier is a measure of government debt resulting from stimulus spending.
What is the role of the fiscal multiplier in economic stimulus packages, and how does it contribute to economic recovery during a recession? A) The fiscal multiplier has no impact on economic stimulus packages. B) The fiscal multiplier measures the impact of government spending on the economy; a multiplier greater than 1 indicates that government spending can stimulate economic activity. C) The fiscal multiplier is the amount of money saved by the government through efficient spending. D) The fiscal multiplier is a measure of government debt resulting from stimulus spending.
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter18: Debates In Macroeconomics Over The Role And Effects Of Government
Section: Chapter Questions
Problem 3QP
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Question: What is the role of the fiscal multiplier in economic stimulus packages, and how does it contribute to economic recovery during a recession?
A) The fiscal multiplier has no impact on economic stimulus packages.
B) The fiscal multiplier measures the impact of government spending on the economy; a multiplier greater than 1 indicates that government spending can stimulate economic activity.
C) The fiscal multiplier is the amount of money saved by the government through efficient spending.
D) The fiscal multiplier is a measure of government debt resulting from stimulus spending.
A) The fiscal multiplier has no impact on economic stimulus packages.
B) The fiscal multiplier measures the impact of government spending on the economy; a multiplier greater than 1 indicates that government spending can stimulate economic activity.
C) The fiscal multiplier is the amount of money saved by the government through efficient spending.
D) The fiscal multiplier is a measure of government debt resulting from stimulus spending.
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