What Important Lesson Did American Economists Learn in the 1980s

question 109

Multiple Choice

What important lesson did American economists learn in the 1980s and again in 2001-2003?

• A)Large tax cuts can lead to a balance of trade surplus.
• B)Large government budget deficits can crowd out consumption.
• C)Large government budget deficits can bankrupt the nation.
• D)Large government budget deficits can crowd out net exports.

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Definitions:

Scientific Thinking

A cognitive approach that employs skepticism, objectivity, and evidence-based analysis in understanding natural phenomena.

Empirical Demonstration

The use of observed or measured data to provide evidence for a theory or hypothesis.

Skepticism

An attitude of doubting the truth of something, such as claims, statements, or the authenticity of an event.

Natural Science Inquiry

A methodological approach to investigating phenomena in the natural world through observation, experimentation, and hypothesis testing.