Which of the Following Would Most Likely Occur If the Federal

question 43

Multiple Choice

Which of the following would most likely occur if the federal government increased its spending and enlarged the size of the budget deficit during a period of full employment?

• A) The rate of inflation would decline.
• B) The rate of inflation would rise.
• C) A recession would develop.
• D) Interest rates would fall.

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Definitions:

Spending Variance

The difference between the actual amount of cost incurred and the budgeted or expected amount of cost.

Births

The occurrence of an organism coming into life or existence, relevant in demographic and epidemiological studies.

Spending Variance

The difference between the budgeted amount of expenses and the actual amount spent.

Corporate Function

Essential activities or responsibilities centralized at the corporate level, helping in achieving the organization's strategic objectives and supporting day-to-day operations.