American recovery and re-investment act

Assignment Help Business Economics

Reference no: EM13836939

Consider the Stimulus Package or the American Recovery and Re-investment Act (ARRA) of 2009. It increased government expenditures by roughly $750 billion. Why are we not seeing the increased GDP as yet? Your answer is----

A. There may have been some crowding out effect.

B. There is time inconsistency problem

C. There is some monetary accommodation leading to higher money supply

D. All of the above are logical explanations of ineffective increase in government expenditure.

Reference no: EM13836939

Questions Cloud

Use real interest rate to calculate after-tax present worth : If direct material and labor cost is not the major component in the cost structure, it is more appropriate to use activity based costing to allocate the overhead cost. By life cycle viewpoint, salvage value summarizes all the costs and revenues occur..

Market segments that clearly fail to meet each of criteria : To be of value, a market segment must meet five criteria. Outline a talk focusing on examples of market segments that clearly fail to meet each of these criteria?

How would this unexpectedly low inflation rate help : Suppose that inflation in Australian was expected to equal 6 per cent in 2015, but prices rose by only 3 per cent. How would this unexpectedly low inflation rate help or hurt each of the following?

Balance budget amendment to the constitution : The main reason why there is no support amongst economists to balance the budget every year (Balance budget amendment to the constitution) is that doing so will----

American recovery and re-investment act : Consider the Stimulus Package or the American Recovery and Re-investment Act (ARRA) of 2009. It increased government expenditures by roughly $750 billion. Why are we not seeing the increased GDP as yet?

The current budget deficit of usa is not sustainable primary : The current budget deficit of USA is not sustainable primary because--------

Two politically opposite view about conduct of fiscal policy : We have two politically opposite views about conduct of fiscal policy. ------are willing to close the GDP gap via----- and -----favor----

Story of entitlements such health care and welfare payments : The story of entitlements such as health care and welfare payments to the elderly in the US is pretty ----. This is partly because these payments form---part of the government budget and they are----

Fiscal policy makers cannot manage balancing the budget : It is obvious that US fiscal policy makers cannot manage balancing the budget every year, As an alternative, Balancing the budget over the business cycle requires

User Account

All Pages