The Effect of an Increase in the Government Budget Deficit

question 15

Multiple Choice

The effect of an increase in the government budget deficit on the equilibrium level of GDP is essentially the same as a(n)

• A)decrease in saving.
• B)increase in saving.
• C)decrease in consumption.
• D)decrease in investment.

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Definitions:

British Support

Refers to assistance or backing provided by the United Kingdom to various entities or causes, historically significant during events like the American Revolutionary War and World Wars.

British Statesmen

British statesmen are political leaders and public figures from the United Kingdom who have significantly influenced British politics, policies, and its role on the international stage.

Southern Efforts

Actions or endeavors undertaken in the southern region of a country, often referring to specific historical, social, or political campaigns or movements.

Southern Cotton

Refers to cotton produced in the Southern United States, historically significant for its role in the economy, particularly in relation to slavery and the Civil War.