When Comparing a $100 Billion Increase in Government Expenditure to a $100

question 24

Multiple Choice

When comparing a $100 billion increase in government expenditure to a $100 billion decrease in tax revenue, the effect of the increase in government expenditure on aggregate demand is

• A) negative, whereas the effect of the tax decrease is positive.
• B) positive, whereas the effect of the tax decrease is negative.
• C) greater than the effect of the tax decrease.
• D) equal to the effect of the tax decrease.
• E) less than the effect of the tax decrease.

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Definitions:

Metabolic Alkalosis

A disturbance in the body's acid-base balance, leading to an increase in blood pH due to excessive alkali in the body.

Gastric Suction

A procedure to remove stomach contents using a tube inserted through the nose or mouth into the stomach.

Pitting Edema

A symptom where pressure applied to the skin leaves a lasting indentation, often indicating fluid accumulation.

Interstitial

Relating to the small spaces or gaps between tissues or parts of an organ in the body.