Which of the Following Are Possible Consequences When the Government

question 41

Multiple Choice

Which of the following are possible consequences when the government reduces government
Purchases to address an inflationary gap?
I. increase in the price of bonds
II. increase in net exports
III. decrease in the federal budget deficit (or increase the surplus)
IV. decrease in the exchange rate

• A) I, II, III, and IV
• B) I and III only
• C) I, III, and IV only
• D) II, III, and IV only

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Definitions:

Working Memory Test

An assessment that measures an individual's ability to hold and manipulate information in their mind over short periods of time.

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The theory that a single, general ability underlies an individual's performance across a variety of cognitive tasks.

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The risk of confirming negative stereotypes about one's group, which can hinder performance in affected individuals.