If Current Savings Increases the Same Amount as the Federal

question 54

Multiple Choice

If current savings increases the same amount as the federal stimulus,

• A) the budget deficit will not increase.
• B) the effects of the stimulus are negated.
• C) the government will continue to conduct fiscal policy.
• D) consumption must also increase.
• E) the effects of the stimulus are multiplied.

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Definitions:

Negative Cognitive Triad

Perspective seen in depressed people in which they have negative views of themselves, of the world, and of the future.

Depression

An affliction related to mental health, manifested by lasting downtrodden spirits or disinterest in usual hobbies, causing substantial daily life disruption.

Cortisol

Hormone that helps the body respond to stressors, inducing the fight- or- flight response.

Hippocampus

A major component of the brain involved in memory formation, organization, and retrieval, as well as spatial navigation.