In the Short Run,a Decrease in Government Purchases Would

question 184

Multiple Choice

In the short run,a decrease in government purchases would

• A) decrease real GDP because of the multiplier effect and price level changes,but be offset somewhat by decreases in the interest rate
• B) decrease real GDP because of the increases in the price level and increases in the interest rate
• C) decrease real GDP because of the multiplier effect and increase in the interest rate,but be offset somewhat by decreases in the price level
• D) decrease real GDP because of the multiplier effect,but be offset somewhat by decreases in the price level and the interest rate
• E) not change output because of the multiplier effect;price level and interest rate changes completely cancel each other out.

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Definitions:

Article 9

A section of the Uniform Commercial Code in the United States that governs secured transactions involving personal property.

UCC

The Uniform Commercial Code, a set of laws governing sales and commercial transactions in the United States.

Perfection

A legal process that establishes a secured party's interest in the collateral, giving priority over other third-party claims.

Exoneration

The act of being cleared or absolved from blame, responsibility, obligation, or, specifically in legal terms, criminal charges.