Answer any one of the following in not more than 500 words : (a) When President Trump of the United States says that he will create an economic recovery in the US by lowering tax rates and increasing military and infrastructure spending, what is the economic argument he is relying upon? What are the assumptions of this argument?
JNU SSS 2017 Question 50: Fiscal and monetary policy effectiveness
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Fiscal and monetary policy effectiveness has come up 30 times in 7 exams since 2010.
What this question tests
This question is on Relative effectiveness of fiscal and monetary policy, part of Fiscal and monetary policy effectiveness in Macroeconomics.
When each policy works best and how they interact.
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