The Effect of a Sustained Increase in Government Spending or Investment

question 140

True/False

The effect of a sustained increase in government spending or investment on aggregate output is larger in an open economy than in a closed economy.

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Definitions:

Behaviorism

A branch of psychology that focuses on observable behaviors and the ways they're learned, ignoring internal thought processes.

Watson

John B. Watson, an American psychologist who established the psychological school of behaviorism, emphasizing the importance of observable behavior.

Cognitive Processes

The mental actions or operations involved in acquiring knowledge and understanding through thought, experience, and the senses.

Personality Theory

A framework that attempts to explain the patterns of thoughts, feelings, and behaviors that make up an individual's personality.