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:

Executive Function

Higher-order, complex cognitive processes, including thinking, planning, and problem solving.

Subconscious Awareness

Mental processes carrying out below the level of conscious thought, influencing feelings, actions, and thoughts unknowingly.

Controlled Processes

Mental activities requiring focused attention that generally interfere with the ability to conduct other processes simultaneously.

Automatic Processes

Mental activities that require minimal conscious thought and attention, such as walking or breathing, typically developed through repeated practice or activity.