Which of the following is NOT an argument AGAINST the use of expansionary fiscal policy?
A)Government spending may crowd out private spending.
B)Government borrowing may crowd out private investment spending.
C)Government borrowing may reduce the marginal propensity to consume.
D)Government budget deficits may lead to reduced private spending.

Question

Quizplus · Accepted Answer

This is actually an argument in favor of expansionary fiscal policy as it suggests that government borrowing can lead to increased savings and investment by households and businesses. The other options are all arguments against expansionary fiscal policy.

Which of the Following Is NOT an Argument AGAINST the Use