Which Statement Is NOT a Reason Government Spending Sometimes Increases

question 143

Multiple Choice

Which statement is NOT a reason government spending sometimes increases growth?

• A) Spending can lower inflation and keep prices and wages steady.
• B) Spending can move unemployed factors of production into productive activities.
• C) Spending can encourage additional private investment.
• D) Spending can increase consumer confidence.

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Definitions:

Persistent Posttraumatic Stress Disorder

A chronic condition characterized by severe anxiety and distress following exposure to a traumatic event.

Hallucinations

Perceptions in a conscious and awake state in the absence of external stimuli which have qualities of real perception, often seen in psychiatric conditions or drug use.

Schizophrenia

A severe mental disorder characterized by distortions in thinking, perception, emotions, language, sense of self, and behavior.

DSM

Diagnostic and Statistical Manual of Mental Disorders; a manual published by the American Psychiatric Association that categorizes and defines mental disorders.