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How did government spending affect the economy-?
Federal spending on forgein aid increased demand for U.S goods.
When would the government most likely increase its spending?
When unemployment has increased
What makes increased government spending an effective tool for increasing demand?
By increasing government spending, you increase the demand for certain products because the government is looking to buy those products. The government can act as a consumer, and when a consumer spends more, the demand for goods and services is increased.
What does crowding out mean?
Increased government spending results in higher interest rates which puts downward pressure on investment spending.
How does crowding in versus crowding out impact the overall effectiveness of government spending on economic growth?
Crowding in occurs when government spending stimulates private sector investment, leading to increased economic growth. Crowding out happens when government spending reduces private sector investment, potentially limiting economic growth. The overall effectiveness of government spending on economic growth depends on whether crowding in or crowding out occurs.
What did President Roosevelt do for the US economy?
He increased government spending
Both the increased spending by the national government and the nationally imposed income tax?
Both the increased spending by the national government and the nationally imposed income tax
How did government spending affect the economy-?
Federal spending on forgein aid increased demand for U.S goods.
Causes of public debts?
majorly caused by increased government spending
When would the government most likely increase its spending?
When unemployment has increased
When would government most likely increase its spending?
When unemployment has increased
How was the us government's response to the great depression different after Franklin d Roosevelt's election as president than it was before?
It increased spending based on Keynesian economic principles.
How did Roosevelt's election as president change the way the U.S. government responded to the Great Depression?
Rather than eliminating services and cutting spending, it increased social welfare programs
What makes increased government spending an effective tool for increasing demand?
By increasing government spending, you increase the demand for certain products because the government is looking to buy those products. The government can act as a consumer, and when a consumer spends more, the demand for goods and services is increased.
What does crowding out mean?
Increased government spending results in higher interest rates which puts downward pressure on investment spending.
How did Franklin Roosevelt's election as president change the way the U. S. government responded to the Great Depression?
Rather than eliminating services and cutting spending, it increased social welfare programs
When was the federal government spending largest as a percentage of the economy?
The federal government spending was largest as a percentage of the economy in 2020 due to increased spending related to the COVID-19 pandemic and relief efforts.
