Which Statement Is NOT a Major Limit to the Effectiveness

question 186

Multiple Choice

Which statement is NOT a major limit to the effectiveness of fiscal policy?

• A) A single increase in government spending may not be enough to stimulate the economy.
• B) The crowding out effect is transmitted through financial markets.
• C) Fiscal policy is not very effective in combating supply side shocks.
• D) A multiplier effect is associated with changes in spending and taxation.

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Definitions:

Psychodynamic

Pertains to a psychological approach that emphasizes unconscious psychological processes (for example, wishes and fears of which we're not fully aware), and contends that childhood experiences are crucial in shaping adult personality.

Social Cognitive

Pertaining to the understanding and application of how thoughts, beliefs, and cognitive processes influence social behavior and learning.

Humanistic

A psychological approach that emphasizes personal worth and the uniqueness of individuals, focusing on self-actualization and personal growth.

Parenting Style

The characterization of different approaches to raising children, including authoritative, authoritarian, permissive, and uninvolved styles.