Which of the Following Arguments Is Not a Valid Argument

question 53

Multiple Choice

Which of the following arguments is not a valid argument against the effectiveness of the fiscal stimulus bill?

• A)Employment continued to fall into early 2010.
• B)Without stimulus recessions come to an end naturally.
• C)State and local government spending increased.
• D)Monetary policy played a large role in stimulating the economy.

---

Definitions:

Labor Income

Earnings from work or employment, including wages, salaries, bonuses, and any other form of payment for labor services.

Budget Constraint

The limitation on the consumption bundles that a consumer can afford based on their income and the prices of goods and services.

Net Demands

The total demand for a product or service minus the supply provided, reflecting the actual market demand not met by current production.

Gross Demands

The total demand for a good or service before accounting for substitutions or complementarity effects.