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.

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Definitions:

Marked Down

When the price of an item is reduced, typically to clear inventory or increase sales during a promotion.

Existing Models

Previously established or currently available versions of products, services, or concepts.

Seasonal Markdowns

Discounts offered on products or services to clear inventory corresponding to the end of a season.

Future Sales

Predicted transactions or revenue expected to be generated through selling products or services in forthcoming periods.