Which Statement Is NOT an Argument Against the Use of Expansionary

question 80

Multiple Choice

Which statement is NOT an argument against the use of expansionary fiscal policy?

• A) Government spending may crowd out private spending.
• B) Government borrowing may crowd out private investment spending.
• C) Government borrowing may reduce the marginal propensity to consume.
• D) Government budget deficits may lead to reduced private spending.

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Definitions:

Mature Trees

Trees that have reached their full size and have usually stopped growing in height, playing a significant role in their ecosystem.

Vegetation

Vegetation consists of all the plants and trees in an area, providing essential functions for ecosystems, such as oxygen production, carbon sequestration, and habitat for wildlife.

Canada's Forests

Vast and diverse forested areas in Canada, including boreal forests and temperate rainforests, which play a critical role in the country's biodiversity, economy, and cultural heritage.