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:

Par Value

The face value of a bond or stock as stated by the issuing company, which may differ from its market value.

Authorization

The official permission or power to do something, often formally granted by a higher authority.

Consent

Voluntary agreement or permission for something to happen or agreement to do something.

Earned Surplus Test

A financial measurement to assess a company's ability to pay dividends based on its accumulated, undistributed profits.