Economists Who Argue in Favor of Rapid Deficit Reduction Claim

question 71

Multiple Choice

Economists who argue in favor of rapid deficit reduction claim that deficit reduction will

• A)reduce crowding in, reduce interest rates, and increase AS.
• B)stimulate AD and productivity.
• C)trigger crowding in, increase investment, and increase AS.
• D)reduce crowding out, increase investment, and increase AS.

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Definitions:

Compounded Semi-annually

Interest on an investment or loan is calculated and added to the principal sum twice a year.

Financial Functions

Mathematical expressions that are used to calculate interest, future values, present values, payments, and other financial metrics.

Compounded Quarterly

A method of calculating interest where the interest is added to the principal four times a year, leading to a faster growth rate of the investment or loan due to the compounding effect.

Business Offers

Proposals or bids made by companies or individuals in the context of business transactions, which can include prices, terms, and conditions for services or products.