The Possibility of Indirect Crowding Out Suggests That,if the Government

question 97

Multiple Choice

The possibility of indirect crowding out suggests that,if the government wants to engage in expansionary policy,it must

• A)increase spending less than the simple Keynesian model would predict.
• B)increase spending more than the simple Keynesian model would predict.
• C)reduce taxes rather than increase government spending.
• D)both reduce taxes and reduce spending to be able to achieve full employment.

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Definitions:

Anti-Federalists

Individuals or groups who opposed the adoption of the U.S. Constitution, advocating for a weaker central government in favor of stronger state governments.

Patrick Henry

was an American attorney, planter, and orator best known for his declaration to the Second Virginia Convention (1775): "Give me liberty, or give me death!"

Samuel Adams

An American statesman, political philosopher, and one of the Founding Fathers of the United States, known for his role in organizing the Boston Tea Party and in forming the Continental Congress.

Political Institutions

Structures and systems within a society that govern the conduct of public affairs, politics, and policy-making.