What Is an Effect of an Increase in Government Purchases

question 100

Multiple Choice

What is an effect of an increase in government purchases?

• A) It decreases interest rates.
• B) It results in a decrease in the government deficit.
• C) It crowds out investment spending by business.
• D) It decreases money demand.

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Definitions:

Central Sulcus

A prominent landmark on the surface of the human brain separating the frontal lobe from the parietal lobe, involved in processing sensory and motor information.

Pyramidal Neuron

A type of excitatory neuron found in certain areas of the brain, such as the cerebral cortex, with a distinctive pyramid-shaped cell body.

Sensory Neuron

A type of neuron that converts external stimuli from the organism's environment into internal electrical impulses.

Efferent Neuron

Neurons that carry neural impulses away from the central nervous system towards effectors such as muscles or glands.