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:

Self-Esteem

A person's subjective emotional judgement regarding their self-value.

Confidence

The feeling or belief that one can rely on someone or something; self-assurance.

Approach Motivation

A psychological construct referring to an individual's predisposition to move towards, or seek out, positive outcomes or rewards.

Anticipating Rewards

The process of expecting or looking forward to rewards, which can drive motivation and behavior toward achieving those rewards.