In Practice, Increases in Government Spending in an Open Economy

question 89

Multiple Choice

In practice, increases in government spending in an open economy can crowd out

• A) consumption.
• B) investment.
• C) net exports.
• D) all of the above

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Definitions:

Negligent Liability

Legal responsibility for harm caused as a result of failing to act as a reasonable person would have acted under similar circumstances.

Certified Public Accountant

A professional accountant who has met certain education and licensing requirements and is qualified to perform accounting services for the public.

Financial Trouble

A situation where an individual or organization struggles to meet financial obligations due to insufficient funds or mismanagement.

Internal Revenue Code

The comprehensive body of tax laws and regulations governing the United States federal tax system.