In the Long Run

question 113

Multiple Choice

In the long run,

• A) a larger budget deficit means a larger money supply
• B) lower investment spending means slower growth of the standard of living
• C) a larger budget deficit means lower consumption spending
• D) a larger budget surplus means a smaller capital stock
• E) government spending has no effect on the budget deficit or surplus.

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Definitions:

Trick

A cunning or skillful act or scheme intended to deceive or outwit someone.

Kinesthetic Sense

The sense that detects bodily position, weight, or movement of the muscles, tendons, and joints.

Coordination

The organization of different elements or parts so as to enable them to work together efficiently, often seen in physical movements and organizational tasks.

Sensory Accommodation

The process by which sensory systems adapt or adjust their sensitivity to different levels of stimulation.