If the Public Consumes €100 Billion Less and the Government

question 58

Multiple Choice

If the public consumes €100 billion less and the government purchases €100 billion more (other things unchanging) , which of the following statement is true?

• A) Saving is unchanged.
• B) There is an increase in saving and the economy should grow more quickly.
• C) There is a decrease in saving and the economy should grow more slowly.
• D) There is not enough information to determine what will happen to saving.

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Definitions:

Internalizing Problem

Psychological issues that are manifested inwardly, such as anxiety, depression, and withdrawal, as opposed to externalizing problems that involve outward behaviors towards others.

Externalizing Problem

Behaviors directed outwardly, typically involving conflicts with other individuals or society, such as aggression or defiance.

Mood Disorder

A psychological disorder characterized by the elevation or lowering of a person's mood, such as depression or bipolar disorder.

Separation Anxiety Disorder

A psychological condition in which an individual experiences excessive fear or anxiety about separating from those to whom they are attached.