Which of the Following Would Those in Favor of Increasing

question 14

Multiple Choice

Which of the following would those in favor of increasing government spending rather than decreasing taxes to prop up aggregate demand probably not agree with?

• A)Traditional Keynesian analysis indicates that increases in government purchases are a more potent tool than decreases in taxes for increasing aggregate demand.
• B)Increased government spending on "shovel-ready" projects can be helpful to boost aggregate demand.
• C)Increases in government spending offer a greater "bang for the buck" than decreases in taxes.
• D)When the government gives a dollar in tax cuts to a household,that dollar immediately and fully adds to aggregate demand.

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Definitions:

Thought Disorder

A form of disordered thinking where individuals have difficulty organizing their thoughts, often evident in their speech and writing, indicative of various psychological conditions.

Schizophrenia

A chronic and severe mental disorder affecting how a person thinks, feels, and behaves, marked by episodes of psychosis.

Vocabularies

Vocabularies refer to the set of words that a person knows and uses; in psychology, it can relate to language development and cognitive abilities.

Abstract Concepts

Ideas or thoughts that do not have a physical or concrete existence, but exist only in the mind.