The Following Question Are Based on the Following Diagram

question 18

Multiple Choice

The following question are based on the following diagram:

-From the diagram,one can infer that

• A) changes in government spending change the value of the multiplier.
• B) an increase in government spending results in a budget surplus.
• C) a decrease in government spending results in a corresponding increase in private spending.
• D) government spending should always be increased.
• E) an increase (or decrease) in government spending leads to an increase (or decrease) in total intended spending.

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Definitions:

Restraint Of Trade

A limitation on the full exercise of doing business with others.

Monopoly

The exclusive control of a market by a business enterprise.

Market

A venue or mechanism where buyers and sellers interact to trade goods, services, or securities, determining prices through supply and demand.

Unlawful Tying Agreement

An unlawful tying agreement is a form of anti-competitive conduct where a seller requires the buyer to purchase a secondary product as a condition of buying a desired primary product.