Question

Keynesian fiscal policy has A. increased in popularity because of its simplicity and ease of use....

Keynesian fiscal policy has

A.

increased in popularity because of its simplicity and ease of use.

B.

lost much of its favour in recent years as deficits seem to reduce economic growth.

C.

been shown to encourage greater economic growth.

D.

been shown to have no relationship to actual economic performance.

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Answer #1

"B"

Keynesian fiscal policy has shown greater success in the developed nations that have excess capacity that are not used. If there is no exces capacity then it will cause a crowding out in the market. Most of the time its the fiscal polocy crowding out the growth in the market.

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