A Lesson the U

question 51

Multiple Choice

A lesson the U.S.might learn from the Canadian experience of the late 1990s is that

• A)it is possible to reduce government spending and the results can be positive.
• B)reductions in government spending when an economy is sluggish will lead to a disastrous outcome.
• C)budget deficits stimulate aggregate demand and reduce unemployment just as the Keynesian model implies.
• D)a country can continue to expand its debt as a share of the economy without experiencing higher interest rates.

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Definitions:

Mental Activities

Tasks or operations that involve cognitive functions such as thinking, reasoning, memory, and problem-solving.

Processing

The act of taking in, understanding, and interpreting information or stimuli.

Psychoanalytic Psychology

A theory developed by Freud focusing on unconscious processes and the significance of childhood experiences in shaping personality.

Emphasized

Given special importance or prominence to something in speaking or writing.