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jlg71 jlg71
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2 months ago
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.
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Macroeconomics


Edition: 3rd
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yoorimchiyoorimchi
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2 months ago
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The checks encourage households to buy more from online retailers.

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jlg71 Author
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2 months ago
Thanks for your help!!
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Brilliant
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2 hours ago
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