The Recommendation That the Government Should Avoid Deficit Spending Because

question 34

Multiple Choice

The recommendation that the government should avoid deficit spending because of the crowding-out effect on investment spending is consistent with _____ macroeconomics.

• A) classical
• B) Keynesian
• C) monetarist
• D) Great Moderation consensus

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Definitions:

Cash

Money in the form of coins or banknotes, especially that held to conduct transactions or as part of a business's liquid assets.

Prepaid Insurance

An asset account that represents payments made in advance for insurance coverage, which is expensed over the period the insurance policy is in effect.

Trial Balance

A bookkeeping worksheet wherein the balances of all ledgers are compiled into debit and credit account columns to check for the arithmetic accuracy of the accounts.

Debit Column

In bookkeeping, the column in an account where debits are recorded, typically on the left-hand side.