Which Statement Is NOT an Argument Against the Use of Expansionary

question 80

Multiple Choice

Which statement 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:

Transfer-appropriate Processing

A principle suggesting that memory retrieval is more effective when the cognitive processes at retrieval match those at encoding.

Conceptual Hierarchies

Conceptual hierarchies are organizational systems that arrange concepts, ideas, or items from the most general level to the most specific.

Connectionist Model

A cognitive model based on the concept that mental phenomena can be described by interconnected networks of simple and uniform units.

Parallel Distributed Processing

A model for neural computation that suggests information is processed simultaneously across different pathways in the brain.