If Government Purchases Change, Which Variable Is Fixed in the Short

question 137

Multiple Choice

If government purchases change, which variable is fixed in the short run as a result of the change?

• A)Saving
• B)All of these
• C)Consumption
• D)Net exports
• E)Inflation

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Definitions:

Legal Capital

The minimum amount of capital that a company must maintain as required by law, often set to protect creditors.

Par Value

The nominal or face value of a bond, share of stock, or other financial instrument as stated by the issuer.

Legal Significance

Refers to the importance or implications of something within the realm of the law, often determining how legal documents, decisions, or actions are interpreted and enforced.

SEC

The Securities and Exchange Commission, a U.S. federal agency responsible for enforcing federal securities laws and regulating the securities industry.