In the Long Run,most Economists Agree That a Permanent Increase

question 30

Multiple Choice

In the long run,most economists agree that a permanent increase in government spending leads to

• A)no decrease in private spending.
• B)a decrease in private spending by less than the amount that government spending increased.
• C)a decrease in private spending by the same amount that government spending increased.
• D)a decrease in private spending by more than the amount that government spending increased.

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Definitions:

Distress

A state of emotional, mental, or physical strain or tension resulting from adverse or demanding circumstances.

Neglectful

Failing to provide adequate attention, care, or support, often resulting in harm or detriment to the well-being of others.

Erikson

Refers to Erik Erikson, a developmental psychologist known for his theory on the psychosocial development of humans.

Mistrust

A lack of confidence in the reliability or truth of something or someone.