Multiple Choice
Economists who argue in favor of rapid deficit reduction claim that deficit reduction will
A) reduce crowding in, reduce interest rates, and increase AS.
B) stimulate AD and productivity.
C) trigger crowding in, increase investment, and increase AS.
D) reduce crowding out, increase investment, and increase AS.
Correct Answer:

Verified
Correct Answer:
Verified
Q66: What happens typically to a budget deficit
Q67: By 2007, the deficit<br>A)was out of control
Q68: Large deficits can retard economic growth.
Q69: A federal budget deficit places a genuine
Q70: Many economists believe that if fiscal policy
Q72: The Troubled Asset Relief Program (TARP) totaled
Q73: Crowding out occurs when deficit spending by
Q74: If the national debt is owed entirely
Q75: If in fiscal year 2015, the federal
Q76: "Budget deficits are inflationary." The truth of