Kudzu Is an Invasive Plant That Was Intentionally Introduced into the U.S

question 4

Multiple Choice

Kudzu is an invasive plant that was intentionally introduced into the U.S. from Japan in 1876. It was initially planted to help curb erosion and to serve as a food source for animals. However, kudzu, which some call the "mile a minute vine," grew out of control. It grew over trees, cars, buildings, and power lines! Kudzu grows approximately 150,000 acres per year! Scientists are trying to slow down the invasion of kudzu by a variety of methods, as follows: Method A: burning and cutting kudzu; reduces growth by 20 percent Method B: infecting the kudzu with a fungus; reduces growth by 40 percent Method C: use of an herbicide; reduces growth by 60 percent If method A is initiated, what would be the annual growth of kudzu?

• A) 15,000 acres
• B) 30,000 acres
• C) 120,000 acres
• D) 240,000 acres

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Definitions:

Crowding-Out Effect

The offset in aggregate demand that results when expansionary fiscal policy raises the interest rate and thereby reduces investment spending.

Government Spending

The total amount of money that a government expends on public services, social welfare programs, infrastructure, and defense, among other areas.

Interest Rates

A charge, expressed in terms of a percentage of the principal, applied by a lender to a borrower for using its resources.

Crowding-Out Effect

A situation where increased government spending leads to a reduction in private sector spending, often due to higher borrowing costs.