One of the Potential Economic Problems Associated with the Extensive

question 175

Multiple Choice

One of the potential economic problems associated with the extensive use of macropolicy to recover from the Great Recession is

• A)the huge government deficits and the flood of money into the banks could set off an inflationary spiral.
• B)the large amount of government spending for job creation could result in rapid and uncontrollable increases in wages.
• C)the flood of money into the banks could cause excessive investment expenditures in the economy.
• D)the tax rebates made available to consumers could cause uncontrollable increases in the price of housing.

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Definitions:

Persuasion

The process of convincing someone to do or believe something through reasoning or the use of temptation.

Norm Of Reciprocity

A social norm that suggests individuals respond to each other in kind, returning benefits for benefits received.

Same Size

Equivalent or equal in magnitude, amount, or dimensions.

Dramatic Nature

The quality of being strikingly emotional or theatrical in character or events.