Question: This question: 1 point ( s ) possible Submit test Cash Handouts Are Coming as Countries Do 'Whatever It Takes' to Survive the Pandemic Shock
This question: points possible
Submit test
Cash Handouts Are Coming as Countries Do 'Whatever It Takes' to Survive the Pandemic Shock
Governments around the world are preparing to make direct cash payments to citizens who need help paying for food, housing, and utilities. Many governments have also announced their intentions to increase expenditure.
Source:
cnncom, January
Suppose that a country decides to spend $ billion on cash payments and $ billion on infrastructure projects in response to the pandemic.
Which of these expenditures would have the larger effect on equilibrium expenditure, other things remaining the same?
ther things remaining the same,
A the cash handouts decreases equilibrium expenditure and the increase in spending on infrastructure projects increases equilibrium expenditure
B the spending on infrastructure projects has a greater effect on equilibrium expenditure than the cash handouts
C the spending on infrastructure projects and the cash handouts have an equal effect on equilibrium expenditure
D the cash handouts has a greater effect on equilibrium expenditure than the spending on infrastructure projects
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
