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.

---

Definitions:

Self-Confidence

Believing in oneself; assured.

Persistent

Persistent describes something that continues to exist or occur over a prolonged period, often despite challenges or resistance.

Overcoming Obstacles

The process or act of resolving or navigating through challenges, difficulties, or barriers in one's path.

Determined

Having a firm decision or being resolute in purpose.