What Important Lesson Did American Economists Learn in the 1980s

question 109

Multiple Choice

What important lesson did American economists learn in the 1980s and again in 2001-2003?

• A)Large tax cuts can lead to a balance of trade surplus.
• B)Large government budget deficits can crowd out consumption.
• C)Large government budget deficits can bankrupt the nation.
• D)Large government budget deficits can crowd out net exports.

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Definitions:

Neuroscience Perspective

A view that focuses on understanding the neural processes that occur during social judgment and behavior. Neuroscience involves assessments of brain waves, brain imaging, and cardiovascular functioning.

Cultural Perspective

A view that focuses on the influence of culture on thought, feeling, and behavior.

World War II

A global military conflict that took place between 1939 and 1945, involving most of the world's nations and marked by significant events and severe human and economic losses.

Economic Crisis

A situation in which a country's economy experiences a sudden downturn brought on by a financial panic or an external shock, leading to a severe drop in consumer wealth and confidence and financial instability.