If a Government Finances an Increase in Its Expenditures by Selling

question 54

Multiple Choice

If a government finances an increase in its expenditures by selling bonds to the public, then the aggregate demand curve will:

• A)not shift.
• B)shift out - but not as much as it would if crowding out didn't occur.
• C)shift out by the same amount regardless of whether crowding out occurs.
• D)shift out more if crowding out occurs.

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Definitions:

Capsid

A capsid is the protein shell that encloses the genetic material of a virus, protecting it and aiding in its transmission between hosts.

Metabolic Activities

The chemical processes occurring within a living organism that are necessary for the maintenance of life, including energy production and synthesis of molecules.

Manufacture Proteins

The process of protein synthesis where cells build proteins based on genetic instructions.

Phages

Viruses that infect and replicate within bacteria and archaea.