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:

Social Proof

The psychological phenomenon where people mimic the actions of others in an attempt to reflect correct behavior for a given situation.

Word-of-mouth

A form of marketing where consumers share information and opinions about products or services with others, significantly influencing buying behavior.

Mavens

Individuals recognized as knowledgeable experts, often influencing others through their opinions and recommendations.

Connectors

Individuals who play a critical role in communities by linking numerous people across various social or professional groups, enabling the spread of information or trends.