The Equilibrium Effects of a Temporary Increase in Government Spending

question 19

Multiple Choice

The equilibrium effects of a temporary increase in government spending include

• A)a decrease in the real wage and an increase in the real interest rate.
• B)an increase in the real wage and a decrease in the real interest rate.
• C)a decrease in the real wage and a decrease in the real interest rate.
• D)real wages and the real interest rate remaining unchanged.
• E)an increase in the real wage and an increase in the real interest rate.

---

Definitions:

Human Tissue

Biological tissue from humans used for medical research, treatment, or transplantation.

Biotechnology Age

A period characterized by rapid advancements and widespread application of biotechnological research and development.

Placenta-Enriched Shampoos

Haircare products that claim to use placental extract as an ingredient, believed to nourish and strengthen hair.

DNA-Run Computers

Theoretical or experimental computers that use DNA and molecular biology processes instead of traditional silicon-based computing technologies.