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Increases in Government Expenditures and Large Budget Deficits Are Projected

Question 111

Multiple Choice

Increases in government expenditures and large budget deficits are projected for 2014-2020. If the economic recovery is weak and growth is sluggish during this decade, this will be


A) supportive of the Keynesian view, but inconsistent with the crowding-out, new classical, and supply-side theories.
B) inconsistent with the Keynesian view, but supportive of the crowding-out, new classical, and supply-side theories.
C) inconsistent with both Keynesian and non-Keynesian theories.
D) supportive of both Keynesian and non-Keynesian theories.

Correct Answer:

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