The Effect of an Increase in Government Spending on Real

question 47

Multiple Choice

The effect of an increase in government spending on real GDP will be lesser:

• A)the smaller the crowding-out effect.
• B)the smaller the percentage of government spending financed by tax increases.
• C)the larger the government budget surplus.
• D)the more rapidly money is converted into goods.
• E)the steeper the aggregate supply curve.

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Definitions:

Defamation

The intentional communication of false statements that damage someone’s character or reputation.

False Comments

Incorrect or misleading statements made, often with the intention to deceive.

Routine Request

A routine request is a standard or regular request for information, services, or action within an organization or between businesses.

Direct Approach

Message organization that starts with the main idea (such as a recommendation, a conclusion, or a request) and follows that with supporting evidence.