Upon Which of the Following Propositions Are Supply-Siders More Likely

question 7

Multiple Choice

Upon which of the following propositions are supply-siders more likely to agree with Keynesians than with modern monetarists?

• A)Rapid growth of the money supply generates inflationary pressures.
• B)Raising government spending is the surest cure for a depression.
• C)Transfer payments are expansionary because the poor have a higher marginal propensity to save than the rich.
• D)Cuts in tax rates promote economic growth by the private sector.

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Definitions:

Situational Attribution

The process of attributing an individual's behavior to external factors in the environment rather than to internal personality traits.

Attitude

An acquired inclination to assess various entities, including people, topics, objects, or occurrences, in a specific manner.

Foot-In-The-Door Phenomenon

The foot-in-the-door phenomenon is a psychological tactic involving getting someone to agree to a small request to increase the chances they will agree to a larger request later.

Role Playing

A method for learning or therapeutic intervention where individuals act out roles in a controlled setting to gain insight into themselves or others.