The Fallacy of the Broken Window Suggests That the Repair

question 79

Multiple Choice

The fallacy of the broken window suggests that the repair costs of a broken window:

• A) increase total spending and stimulate the economy.
• B) are offset by reductions in other spending and thus do not stimulate the economy.
• C) reduce total spending because shopkeepers save more to be prepared for other emergencies.
• D) increase total spending but do not stimulate the economy.

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Definitions:

Expressing Anger

The process of communicating feelings of displeasure or irritation in response to perceived wrongs or frustrations.

Habitual

Behaviors or patterns that are regularly practiced, making them automatic or difficult to change.

High Blood Pressure

A condition where the force of the blood against the walls of the arteries is too high, often leading to health issues like heart disease.

Persistent Stress

A state of ongoing or chronic stress that can lead to significant psychological and physical health problems.