Which of the Following Is NOT an Argument AGAINST the Use

question 116

Multiple Choice

Which of the following is NOT an argument AGAINST the use of expansionary fiscal policy?

• A)Government spending may crowd out private spending.
• B)Government borrowing may crowd out private investment spending.
• C)Government borrowing may reduce the marginal propensity to consume.
• D)Government budget deficits may lead to reduced private spending.

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Definitions:

Two-factor Theory

A psychological theory suggesting that emotions are based on physiological arousal and the cognitive labeling of that arousal.

Physiological Arousal

The body's response to external stimuli, resulting in physical changes like increased heart rate, blood pressure, and adrenaline.

Label

A term or phrase used to categorize or describe an individual or concept, often simplifying complex characteristics.

Self-perception Theory

A psychological theory suggesting that people develop their attitudes and feelings by observing their own behavior and concluding what attitudes must have caused it.