Government Spending Is an Injection in the Sense That It

question 32

Multiple Choice

Government spending is an injection in the sense that it

• A)increases the amount of total spending.
• B)increases the size of the federal deficit.
• C)decreases the amount of household saving.
• D)decreases the amount of taxes paid.

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Definitions:

Fluid

A substance that has fluidity; that is, it lacks definite shape and both flows readily and yields to the slightest pressure. Most liquids and gases are fluids.

Gases

Substances that exist in a state that fills any container uniformly, without a definite shape or volume, such as oxygen or nitrogen.

Vapors

Gaseous forms of substances which are liquid or solid at room temperature, often produced by evaporation or sublimation.

Prime Mover

The initial mechanical source of motive power. In the context of a hydraulic circuit, the means used to drive the hydraulic pump would be properly the prime mover, although the term is sometimes used to describe the pump itself.