|
Title: Another part of the initial fiscal response to the Covid-19 recession were checks sent to every ... Post by: jlg71 on Nov 27, 2022 Another part of the initial fiscal response to the Covid-19 recession were checks sent to every adult and child ($1200 per adult and $600 per child). Which of the following is NOT a reason why these checks might have a low fiscal multiplier?
▸ The government borrowing to fund these checks crowds out private investment. ▸ Since many parts of the economy are shut down, households are unable to spend to their checks on additional consumption. ▸ Many households save most or all of the checks rather than spending them because they are afraid an even bigger shock is on its way. ▸ The checks encourage households to buy more from online retailers. Title: Another part of the initial fiscal response to the Covid-19 recession were checks sent to every ... Post by: yoorimchi on Nov 27, 2022 Content hidden
|