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17. What are the drawbacks to recovery stimulus programs?

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Final answer:

Stimulus programs can have drawbacks like crowding out effect, inflationary pressures, and debt accumulation.


Explanation:

Drawbacks to Recovery Stimulus Programs:

1. Crowding Out Effect: When the government increases spending through stimulus programs, it can lead to a decreased level of private investment.

2. Inflationary Pressures: Excessive stimulus can cause inflation, eroding purchasing power and leading to economic instability.

3. Debt Accumulation: Stimulus programs often involve taking on debt, which can burden future generations with repayment obligations.


Learn more about drawbacks of recovery stimulus programs here:

https://brainly.com/question/35886646


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