Figure 21-3 -Refer to Figure 21-3. Which of the Following Is Consistent

question 74

Multiple Choice

Figure 21-3
-Refer to Figure 21-3. Which of the following is consistent with the graph depicted above?

• A) The government begins running a budget surplus.
• B) An expected recession decreases the profitability of new investment.
• C) An increase in government spending crowds out private expenditures.
• D) Technological change increases the profitability of new investment.

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Definitions:

Positive Externalities

Benefits that affect uninvolved third parties resulting from an economic activity or transaction.

Location Decision

The process businesses use to determine the best geographical location for their operations, factoring in costs, accessibility, and market potential.

Market and Supply Allocation

A strategic distribution of resources and products across various markets to optimize supply chain efficiency and meet demand.

Pericardial Cavity

The pericardial cavity is the potential space between the parietal and visceral layers of the pericardium, containing a small amount of lubricating fluid to reduce friction during heart movement.