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:

Neural Connections

The links between neurons through which information flows within the brain and throughout the nervous system.

Cell Death

The process by which cells cease to function, including apoptosis (programmed cell death) and necrosis (death caused by injury or disease).

Dendritic Length

The measure of the extent of a neuron's dendrites, which are the branched projections that receive electrochemical stimulation from other neural cells.

Spine Density

A measure of the number of dendritic spines per unit length of dendrite, indicating the potential for synaptic connectivity and plasticity in neurons.