According to the Spending Allocation Model, Which of the Following

question 64

Multiple Choice

According to the spending allocation model, which of the following statements is correct?

• A)Tax cuts and increases in government purchases have the same effect on the economy.
• B)Tax cuts cause the real interest rate to fall and increases in government purchases cause the interest rate to rise.
• C)Tax cuts cause the real interest rate to rise and increases in government purchases cause the interest rate to fall.
• D)All else held equal, a tax cut has no effect on the nongovernment share of GDP.
• E)All else held equal, an increase in government purchases has no effect on the nongovernment share of GDP.

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Definitions:

Nasal Septum

The cartilage and bone wall that divides the nasal cavity into two nostrils, which can sometimes be deviated, causing breathing difficulty.

Paranasal Sinuses

Air-filled spaces located within the bones around the nasal cavity, contributing to the resonance of voice and humidifying the air we inhale.

Cilia

Microscopic, hair-like structures that protrude from the surface of cells, involved in movement and sensing environmental stimuli.

Pharynx

The muscular tube at the back of the nose and mouth that connects them to the esophagus.