Progressives respond to the crowding out analysis by arguing that

Question

Quizplus · Accepted Answer

The statements collectively represent the progressive perspective on deficit spending, particularly during economic downturns. They argue that in a recession, increased deficit spending is necessary and does not necessarily lead to higher interest rates (A), that weak investment is not directly caused by high deficit spending (B), and that any increase in incomes from deficit spending can boost demand and investment, offsetting any potential rise in interest rates (C).

Progressives Respond to the Crowding Out Analysis by Arguing That