The United States Is Experiencing a Recession and Congress Decides

question 28

Multiple Choice

The United States is experiencing a recession and Congress decides to adopt an expansionary fiscal policy to stimulate the economy.In this case, the crowding-out effect suggests that investment spending will

• A)increase, thus partially offsetting the fiscal policy.
• B)increase, thus partially reinforcing the fiscal policy.
• C)decrease, thus partially offsetting the fiscal policy.
• D)decrease, thus partially reinforcing the fiscal policy.

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Definitions:

Mainstream

Dominant trends, norms, or values that are widely accepted and practiced within a society or culture.

Racial Justice

Advocacy for fair treatment of all people regardless of race, implicating efforts to address inequalities and systemic racism in society.

Liberal-Left Agenda

A term often used to describe political policies and philosophies that advocate for social equality, environmental protection, and governmental intervention in the economy to support welfare programs.

United Nations

An intergovernmental organization established in 1945 to promote international cooperation and to achieve peace and security.