Which Term Refers to the Fall in Investment Due to Government

question 72

Multiple Choice

Which term refers to the fall in investment due to government borrowing?

• A) the Barro reduction
• B) the vicious circle
• C) the Ricardian principle
• D) crowding out

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Definitions:

Polygraph

An instrument that measures and records several physiological indicators such as blood pressure, pulse, respiration, and skin conductivity while the subject answers questions, used to infer truths or lies.

Physiological Responses

Automatic reactions of the body to a stimulus, involving biological or bodily systems and processes, such as heart rate and hormone release.

Cannon-Bard Theory

A theory of emotion that proposes that emotions and bodily changes occur simultaneously following a stimulus, rather than one causing the other.

Two-factor Theory

A theory proposing that emotional experiences arise from a combination of bodily reactions and the cognitive labeling of the reason for the physical reaction.