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Basic Question 5 of 8
Financing expansionary fiscal policy by increasing the deficit doesn't have any offsetting effects on the economy. True or False?
User Contributed Comments 4
| User | Comment |
|---|---|
| yly13 | affects interest rate |
| Khadria | Ricardo-Barro effect |
| KarenMaciel | financing exp fiscal policy would result in an expansionary fiscal policy would result in an decrease in interest rates increasing deficit would result in an increase in interest rates spending more than revenue (increase deficit) and less amount available to private spending and thus increase in interest rates is inevitable Inc in interest rates and decrease of the same would offset each other Fantastic question!!!! |
| gill15 | Dos Equis effect |
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Learning Outcome Statements
describe roles and objectives of fiscal policy as well as arguments as to whether the size of a national debt relative to GDP matters
CFA® 2024 Level I Curriculum, Volume 1, Module 3.