Critics of Keynesian Fiscal Policy Argue That Deficit Spending Will

question 59

Multiple Choice

Critics of Keynesian fiscal policy argue that deficit spending will not stimulate the economy, because higher interest rates will discourage consumption and investment. This argument is known as the:

• A) deficit-substitution effect.
• B) multiplier effect.
• C) burden-of-debt effect.
• D) crowding-out effect.

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Definitions:

Middle-Class Bigotry

Prejudice and narrow-mindedness often found within the middle socioeconomic class, usually towards those of different social classes, races, or cultures.

Capitalism

An economic system characterized by private or corporate ownership of goods and services, and where production, distribution, and prices are determined mainly by competition in a free market.

Mega-Church

Refers to a very large Christian congregation, often associated with evangelical Protestantism, characterized by thousands of members and a wide range of social and community services.

Sister Aimee

A reference to Aimee Semple McPherson, a pioneering figure in the use of media, especially radio for the broadcast of Christian evangelical messages in the early 20th century.