Which of the Following Statements Is True of Government Spending

question 35

Multiple Choice

Which of the following statements is true of government spending?

• A)An increase in government spending raises the equilibrium level of income by a multiple of the original spending increase.
• B)Government spending is a part of monetary policy, not fiscal policy.
• C)A decline in government spending brings about an expansion in the economy.
• D)Increase in government spending increases the recessionary gap in the economy.
• E)An increase in government spending shifts the aggregate demand curve downward by a fraction of the rise in government spending.

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Definitions:

Presbycusis

A form of sensorineural hearing loss that occurs naturally with age, affecting the ability to hear higher frequencies.

Senescence

The process of aging where cells stop dividing and deteriorate, leading to the eventual death of the organism.

Infertile

Incapability of a person or organism to reproduce by natural means.

Fertility Problems

Difficulties in conceiving a child as a result of issues with reproductive health in either or both partners.