One Consequence of an Increase in Government Spending Is That

question 45

Multiple Choice

One consequence of an increase in government spending is that

• A) autonomous consumption will increase
• B) autonomous consumption and investment spending will decrease
• C) the increase in GDP will equal the size of the amount of spending
• D) autonomous consumption and investment spending will increase
• E) investment spending will increase.

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Definitions:

Mistake Of Fact

A legal defense in which an individual argues that a misunderstanding of fact rather than law led to the action that constituted an alleged offense.

Bilateral Mistake

A legal term referring to a misunderstanding where both parties to a contract have incorrect beliefs about an essential fact of the agreement.

Unilateral Mistake

Mistake as to a material fact on the part of only one party to a contract. In this situation, the contract is normally enforceable against the mistaken party, with some exceptions.

Rescission

A remedy in which the contract is canceled and the parties are returned to the positions they occupied before the contract was made.