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:

Negative Reinforcement

The process of strengthening a behavior by removing or avoiding a negative outcome or stimulus.

Positive Punishment

A method of behavior modification that involves the addition of an unfavorable outcome or stimulus following an undesirable behavior to decrease its occurrence.

Negative Punishment

A behavior modification technique where a favorable stimulus is removed after a certain behavior, decreasing the likelihood of that behavior occurring in the future.

Positive Reinforcement

A behavioral concept where a desirable stimulus is introduced following a behavior, increasing the likelihood that the behavior will occur again.