The Initial Effect of an Increase in the Share of Government

question 77

Multiple Choice

The initial effect of an increase in the share of government purchases is

• A)a decline in the share of GDP available for nongovernment purchases.
• B)an increase in the share of GDP available for nongovernment purchases.
• C)a decrease in interest rates.
• D)an increase in interest rates.
• E)a decrease in the nongovernment share of GDP.

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Definitions:

Morula

Mass of 12 or more cells resulting from the early cleavage divisions of the zygote.

Placenta

An organ that develops in the uterus during pregnancy, providing oxygen and nutrients to, and removing waste from, the fetus.

Trophoblast

A layer of cells surrounding the blastocyst in early development that provides nutrients to the embryo and develops into part of the placenta.

Inner Cell Mass

The inner cell mass is a group of cells inside the primordial embryo that will eventually develop into the fetus.