Unintended Consequences of Deficit Spending
Which of the following is a potential unintended consequence of financing expansionary fiscal policy through large-scale government deficit spending?
A
An immediate and sustained decrease in unemployment with no adverse side effects.
B
Crowding out of private investment due to increased demand for loanable funds.
C
A consistent decline in inflationary pressures because of balanced budgets.
D
A reduction in the overall money supply as a result of decreased government spending.
Question Leaderboard
| Rank | |||||
|---|---|---|---|---|---|
| #1 | ktasser23 | 1 | 1 | 0m 00s | 100 |
| #2 | myigitali15 | 1 | 1 | 0m 45s | 55 |
| #3 | elliechin2009 | 0 | 1 | 0m 00s | -10 |
| #4 | hajinkim1128 | 0 | 1 | 0m 00s | -10 |
Items per page:
10
1 – 4 of 4