Critics of Keynesian Fiscal Policy Argue That Deficit Spending Will

question 59

Multiple Choice

Critics of Keynesian fiscal policy argue that deficit spending will not stimulate the economy, because higher interest rates will discourage consumption and investment. This argument is known as the:

• A) deficit-substitution effect.
• B) multiplier effect.
• C) burden-of-debt effect.
• D) crowding-out effect.

---

Definitions:

Bargaining Unit Definition

An assembly of employees, known for their unified interests, who are represented by a singular labor union during collective bargaining discussions.

Ideological Beliefs

A set of convictions or principles that guides an individual's understanding of the world and decision-making processes.

Representation Election

A formal voting process in which employees decide whether or not they want to be represented by a labor union in collective bargaining.

Union Organizing Attempt

The process by which a labor union seeks to represent a group of employees, typically involving a card sign-up and possibly a formal election.