If Deficit Spending Does Not Contribute to Public Investment and Crowds

question 41

Multiple Choice

If deficit spending does not contribute to public investment and crowds out private investment,then

• A)The rate of economic growth will decline,ceteris paribus.
• B)The current generation will bear the total burden of the debt.
• C)Future productive capacity will be enhanced.
• D)The opportunity cost of the debt will be minimized.

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Definitions:

Confounding Variable

An external variable in a statistical analysis that correlates with both the dependent and independent variable, potentially misleading the results.

Causal Relationship

A connection between two events where one directly causes the other to occur.

Alternate-form Reliability

The consistency of test scores across different versions of a test, assessing the same construct.

Reliability

The degree to which an assessment tool produces stable and consistent results over repeated applications.