Critics of the Keynesian View Argue That Increases in Government

question 121

Multiple Choice

Critics of the Keynesian view argue that increases in government spending financed by borrowing will hamper the recovery from a recession and  slow long term growth because

• A) more spending and debt will lead to higher future taxes to cover the cost of government and the interest on the debt.
• B) government spending is directed by political forces, rather than efficient cost-revenue comparisons.
• C) more political spending will lead to more wasteful rent-seeking activities  and less production of goods and services that people value.
• D) All of the above are true.

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Definitions:

Stroboscopic Movement

The illusion of motion created when a series of static images is presented in rapid succession.

Linear Perspective

A depth cue that refers to the tendency for parallel lines to appear to converge as they recede into the distance.

Briefly Flashed

A term describing something shown or displayed for a very short period of time.

Monocular Depth Cue

A monocular depth cue is a visual information piece that allows a person to judge depth using the input from just one eye.