If a Government Finances an Increase in Its Expenditures by Selling

question 54

Multiple Choice

If a government finances an increase in its expenditures by selling bonds to the public, then the aggregate demand curve will:

• A)not shift.
• B)shift out - but not as much as it would if crowding out didn't occur.
• C)shift out by the same amount regardless of whether crowding out occurs.
• D)shift out more if crowding out occurs.

---

Definitions:

Hard Work

Exerting substantial effort or diligence in tasks or responsibilities to achieve success and desired outcomes.

Self-fulfilling Prophecy

A belief or expectation that influences behavior in a way that causes the belief to become true.

Motivational Theory

A concept or model that explains what motivates human behavior, often guiding strategies to increase motivation.

Maintenance Factors

In Herzberg's two-factor theory, aspects of the work environment that are necessary to prevent dissatisfaction but do not necessarily motivate employees.