When Government Purchases Increase,the Spending Multiplier Indicates the _____

question 149

Multiple Choice

When government purchases increase,the spending multiplier indicates the _____.

• A)amount of movement along the aggregate demand curve
• B)amount of movement along the aggregate supply curve
• C)size of the rightward shift of the aggregate demand curve at a given price level
• D)size of the rightward shift of the aggregate supply curve at a given price level
• E)size of the expansionary gap

---

Definitions:

Interstate Commerce Act

A United States federal law that was designed to regulate the railroad industry and its monopolistic practices by requiring reasonable and just rates, prohibiting rebates, and ensuring fair treatment of railway users.

Wheeler-Lea Act

The federal law of 1938 that amended the Federal Trade Commission Act by prohibiting unfair and deceptive acts or practices of commerce (such as false and misleading advertising and the misrepresentation of products).

Antitrust Laws

Legislation designed to promote competition and prevent monopolies and other practices that restrain trade.

Department of Justice

A federal executive department of the U.S. government responsible for the enforcement of laws and administration of justice.