What Can Happen When a Government Continues to Use Expansionary

question 217

Multiple Choice

What can happen when a government continues to use expansionary fiscal policy even as government debt becomes a problem?

• A) Real growth can only happen slowly.
• B) Real growth can be inconsistent.
• C) Real growth can continue to fall.
• D) The interest rate on government debt is likely to fall.

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Definitions:

Slow-Wave Sleep

A deep sleep stage characterized by slow brain waves, low muscle activity, and slowed breathing and heart rate, facilitating physical recovery and memory consolidation.

Emotional Problems

Difficulties related to managing and understanding emotions that can affect one's behavior and well-being.

Mild Sedative

A substance that induces sedation by reducing irritability or excitement at a minimal intensity.

Larger Dose

An increased amount or concentration of a substance or medication administered or taken at one time.