An Increase in Government Spending Is MOST Effective at Improving

question 160

Multiple Choice

An increase in government spending is MOST effective at improving aggregate demand when:

• A) private sector spending is very low.
• B) wages stay low.
• C) banks are not lending.
• D) consumers are increasing their spending.

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Definitions:

State-Dependent Memory

The phenomenon whereby information learned in a particular state of mind (e.g., mood or consciousness) is more readily recalled when in the same state.

Context-Dependent Memory

A phenomenon where individuals recall information more effectively when the context at recall matches the context during encoding, highlighting the impact of environmental cues on memory retrieval.

Filter Theory

A theory primarily in the context of interpersonal relationships that suggests people screen potential social and romantic partners based on various filters such as geography, demography, and personal values.

Psychological Phenomenon

A broad term for any mental process or behavior that can be observed or experienced.