Economics · Public Expenditure Theories
According to the Wiseman-Peacock hypothesis, what does the 'Displacement Effect' signify?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The movement of public expenditure from unproductive to productive levels
- 2A permanent change in the core source of public revenue
- 3A structural change in the maturity of public debt
- 4The movement of public expenditure from an old lower level to a new higher level during a crisis✓
Correct answer
The movement of public expenditure from an old lower level to a new higher level during a crisis
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