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:

Two Groups

A term often used in experimental research design referring to the division of subjects into two distinct categories: the control group and the experimental group.

Manipulation Of Anxiety

Deliberate actions or techniques employed to control or reduce feelings of anxiety and stress in individuals.

Dependent Variable

In an experiment, it's the variable being tested and measured, expected to change as a result of manipulations to the independent variable.

Independent Variable

In experimental research, the variable that is manipulated or changed by the researcher to observe its effects on a dependent variable.