When GDP Growth Declines, Investment Spending Typically and Consumption Spending

question 41

Multiple Choice

When GDP growth declines, investment spending typically and consumption spending typically .

• A).increases; increases.
• B)increases; decreases.
• C)decreases; decreases.
• D)decreases; increases.

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Definitions:

Unsecured Debt

Debt that is not backed by any collateral, meaning if the borrower defaults, the lender has no secured asset to claim for repayment.

Mortgage

A loan typically used to purchase property or real estate, where the property itself serves as collateral for the loan.

Title

The legal right to own, use, or dispose of something, particularly property or intellectual property.

Security

A financial instrument representing an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.