Suppose, government is undertaking expansionary fiscal policy because of recessionary concerns. How will the effectiveness of the policy be affected if public is feeling cautious and not spending...

Suppose, government is undertaking expansionary fiscal policy because of recessionary concerns. How will the effectiveness of the policy be affected if public is feeling cautious and not spending much? Present your arguments in 100 words or less. (Hint: think about the size of the multiplier effect).