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:

Sale of Land

The process of transferring ownership of a parcel of land from one party to another through a legal sale agreement.

Impossibility

A doctrine under which a party to a contract is relieved of his or her duty to perform when that performance has become impossible because of the occurrence of an event unforeseen at the time of contracting.

Express Condition

A clearly stated, specific requirement within a contract that must be met for the contract's promises to be enforceable.

Rose Bowl

A historic American annual college football bowl game played in Pasadena, California.