The Claim That Reducing Deficits in an Economy with High

question 22

Multiple Choice

The claim that reducing deficits in an economy with high rates of unemployment will help even in the short run by improving confidence is called:

• A) quantitative easing.
• B) fiscal stimulus.
• C) expansionary austerity.
• D) a credit crunch.

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Definitions:

Schema

Cognitive structures that help individuals organize and interpret information, based on knowledge gained from past experiences.

Assimilated

The process by which individuals or groups of differing culture come to resemble those of the dominant group, sometimes including the adoption of language, customs, and values.

Accommodated

Adjusted or modified to meet specific needs or requirements.

Birth Cohort

A group of individuals born during the same time period, experiencing certain social and historical events at similar stages of life.