The Decisions on the Part of the Government to Increase

question 195

Multiple Choice

The decisions on the part of the government to increase spending by $5 billion will have the largest impact on aggregate demand when the spending is financed by the sale of bonds to

• A)the member banks.
• B)the public.
• C)the Fed.
• D)foreigners.

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Definitions:

Bootstrapper

An individual who starts a business using limited resources and without significant external financial support.

Resource Ownership

The legal rights to possess, use, and dispose of resources such as land, buildings, goods, or intellectual property.

Corporation

A legal entity that is separate from its owners, with its own rights and responsibilities, allowing it to own property, sue or be sued, and enter contracts.

Board of Directors

A group of individuals elected to represent shareholders and oversee the management and major decisions of a corporation.