Politicians Often Instruct Households to Spend in Order to Help

question 51

Multiple Choice

Politicians often instruct households to spend in order to help the economy.  This advice overlooks the fact that

• A) increases in consumption will make it easier for households to deal with unanticipated future expenses.
• B) increases in consumption will provide more loanable funds for investment.
• C) you cannot have a strong economy if all or most households are spending just about everything they earn.
• D) consumer spending is less than two-thirds of GDP.

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Definitions:

Primary Personality

The subpersonality that appears more often than the others in individuals with dissociative identity disorder.

State-dependent Learning

A phenomenon where information learned in a particular state of mind is more easily recalled when in the same state.

Self-hypnosis

A technique involving self-induced hypnotic state, often used for therapeutic purposes, stress relief, or personal development.

Dissociative Identity Disorder

A mental disorder characterized by the presence of two or more distinct personality states that control an individual's behavior in different circumstances.