The Fallacy in the Strict Crowding-Out Argument Comes from Supposing

question 63

Multiple Choice

The fallacy in the strict crowding-out argument comes from supposing that

• A)the Federal Reserve always accommodates the U.S.Treasury in its financing of the deficit.
• B)corporations always outbid small businesses for government contracts.
• C)the economy's flow of saving is fixed.
• D)investors will spend more when G increases.

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Definitions:

Closed Society

A society that is isolated from others and often restrictive in terms of its social, cultural, or political life.

Free Flow of Information

The unrestricted exchange or transmission of data, facts, and ideas.

Government's Decisions

The conclusions or resolutions made by a government or its officials regarding policies, regulations, or actions.

Critical Thinking

The process of objectively analyzing and evaluating an issue or situation in order to form a judgment.