Scott Is Out Shopping at the Local Bookstore and Stumbles

question 455

Multiple Choice

Scott is out shopping at the local bookstore and stumbles on a rare 20-volume set of The Civil War Years: Crisis, Peril, and Triumph.He has wanted this set for years, but unfortunately right now, he's unable to afford it.If the personality structures proposed by psychoanalytic theory could talk, what would the ego likely say in this situation?

• A) "Get it! Get it! Get it!"
• B) "Talk to the book store owner, see if you can put a small down payment on it to hold it, and then start saving up the money any way that you can."
• C) "You really need this set of books.Why not just charge the whole thing on your already overburdened credit card?"
• D) "You always want things you can't afford.You need to spend your money on necessities, not luxuries."

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Definitions:

Lower Interest Rates

A monetary policy strategy where central banks reduce the cost of borrowing money in an effort to stimulate economic growth.

Crowding Out

A situation in which increased government spending leads to a reduction in private sector spending and investment.

Contractionary Gap

A situation where an economy's real GDP is lower than its potential GDP, indicating underutilization of resources.

Cyclically Balanced

An economic situation where fiscal policy is designed to be neutral over the business cycle, allowing for temporary deficits or surpluses but aiming for a long-term balance.