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:

Durham Rule

A legal standard used to determine criminal liability based on the defendant's ability to distinguish right from wrong due to a mental disorder.

Insanity Defense Reform Act

A 1984 U.S. federal law that significantly modified the criteria for the insanity defense in federal courts, focusing on the defendant's ability to understand the nature and quality of their act.

Diminished Capacity

A legal defense that argues a person should be less culpable for their actions due to mental impairment.

Twinkie Defense

A controversial defense strategy in which the defendant claims diminished capacity due to the effects of consuming an unusual amount or type of food, famously used in the trial of Dan White.