If the Government Ran a Major Deficit, and There Was

question 8

Multiple Choice

If the government ran a major deficit, and there was no noticeable effect on the level of GDP, this could be taken as evidence of

• A)crowding-in.
• B)structural deficit.
• C)crowding-out.
• D)monetary policy ineffectiveness.

---

Definitions:

Demonstrate

The act of showing how something works or proving something through action or explanation.

Ebbinghaus

A psychologist best known for his research on memory and the forgetting curve, which describes how information is lost over time when there is no attempt to retain it.

Nonsense Syllables

Strings of letters that do not follow grammatical rules and have no meaning, used in psychological experiments to study memory and learning.

Methodology

The system of methods followed in a particular discipline or field of study.