Which of the Following Perspectives Exerted the Most Impact on Fiscal
Which of the following perspectives exerted the most impact on fiscal policy during the Great Depression?
A)the Keynesian view
B)the supply-side view
C)the view that the federal government should maintain a balanced budget
D)the new classical view that fiscal policy exerts little impact on demand and output
If fiscal policy were able to exert a significant impact on the economy during the Great Depression,we would expect
A)an increase in government expenditures and a reduction in budget deficits.
B)an increase in government expenditures and an increase in budget deficits.
C)a decrease in government expenditures and a reduction in budget deficits.
D)a decrease in government expenditures and an increase in budget deficits.
Which of the following best describes the impact of fiscal policy during the Great Depression?
A)Despite the large increases in government spending as a share of GDP when the New Deal policies were initiated,the expansionary fiscal policy failed to stimulate demand.
B)Fiscal policy was focused on monetary expansion,when it should have focused on maintaining a balanced budget.
C)It is difficult to link expansionary fiscal policy with economic recovery because government spending and budget deficits were a relatively small portion of GDP prior to the beginning of World War II.
D)There is a direct correlation between increases in government spending as a share of GDP and increases in output and employment.
Which of the following is a lesson that can be learned from monetary policy during the Great Depression?
A)Monetary policy should be changed frequently in response to economic fluctuations.
B)Prolonged periods of monetary contraction will retard economic growth.
C)Low interest rates will direct an economy toward recovery.
D)Monetary policy should focus on variables such as output and employment.