The Accepted Philosophy on U

question 62

Multiple Choice

The accepted philosophy on U.S.federal deficits prior to the Great Depression was that:

• A)the budget should be balanced cyclically.
• B)a budget deficit does not matter as long as the economy is at full employment.
• C)the budget should be annually balanced.
• D)deficits dampen aggregate demand in the short run and reduce the federal debt.
• E)spending decreases during expansions and increases during recessions.

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Definitions:

Stanley Schachter

An American psychologist best known for his development of the Two-Factor Theory of Emotion, which suggests that emotions are determined by physiological arousal and cognitive interpretation of that arousal.

Walter Cannon

An American physiologist known for his work on the fight or flight response and coining the term 'homeostasis.'

Amygdala Complex

A structure within the brain involved in processing emotions, emotional behavior, and motivation, particularly known for its role in fear responses.

Basolateral

Pertaining to the base and sides of a structure, often used in reference to specific areas of the brain, like the basolateral complex of the amygdala involved in emotion processing.