Which of the Following Will Not Cause Aggregate Private Spending

question 57

Multiple Choice

Which of the following will not cause aggregate private spending to decrease?

• A) An increase in future taxes.
• B) A decrease in expected future output.
• C) A decrease in government spending.
• D) An increase in government spending.
• E) An increase in expected future real interest rates.

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Definitions:

Optic Nerve

A cranial nerve that transmits visual information from the retina to the brain.

Sympathetic Branch

Part of the autonomic nervous system that activates the fight or flight response, responsible for increasing heart rate, blood pressure, and energy mobilization.

Autonomic Nervous System

The part of the nervous system that controls involuntary actions of the body, including heart rate, digestion, and respiratory rate.

Pupillary Constriction

The narrowing of the pupil of the eye due to the contraction of the iris muscles, typically in response to bright light or focusing on close objects.