What Important Lesson Did American Economists Learn in the 1980s

question 109

Multiple Choice

What important lesson did American economists learn in the 1980s and again in 2001-2003?

• A)Large tax cuts can lead to a balance of trade surplus.
• B)Large government budget deficits can crowd out consumption.
• C)Large government budget deficits can bankrupt the nation.
• D)Large government budget deficits can crowd out net exports.

Describe the role of mass consumption in shaping early twentieth-century society.

Analyze the evolution of consumer freedoms during the Progressive era.

Explain Louis Brandeis' view on labor unions and their role in society.

Summarize the Progressive era's approach to labor rights and social welfare.

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Definitions:

Liquid Assets

Assets that can be quickly converted into cash with little impact on their value.

Consumption Rate

The proportion of income or resources that is spent on consumption rather than saving.

Savings Rate

The proportion of disposable income that is saved rather than spent on consumption, typically expressed as a percentage.

Credit Cards

Financial instruments issued by banks or financial institutions that allow cardholders to borrow funds with which to pay for goods and services with the obligation to pay back the borrowed money, plus any applicable interest.