Use the Following to Answer Questions

question 212

Multiple Choice

Use the following to answer questions:
-(Figure: The Market for Loanable Funds III) Use Figure: The Market for Loanable Funds III. If the government in a closed economy finances deficits by selling bonds and it decides to decrease defense spending by $200 billion, the decrease in government spending will encourage _____ in additional private investment spending.

• A) $400 billion
• B) $200 billion
• C) $100 billion
• D) $10 billion

---

Definitions:

Incidence

The occurrence, rate, or frequency with which a disease, crime, or something similar happens within a particular group, area, or population.

Smoking

The act of inhaling and exhaling the smoke of tobacco or other substances, which is a well-known risk factor for many diseases.

Lung Cancer

A type of cancer that originates in the lung tissues, often associated with smoking and exposure to toxic substances.

Risk Perception

The subjective judgment individuals make about the severity and probability of a risk, affecting behaviors and attitudes toward that risk.