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:

Americans

Citizens or natives of the United States of America, a diverse population with a wide range of cultural, ethnic, and racial backgrounds.

1935-1942

A period marked by significant global events including the latter years of the Great Depression, the build-up to World War II, and early years of the conflict.

Social Security Act

A law enacted in 1935 in the United States to create a system of transfer payments in which younger, working people support older, retired people.

National Health Insurance

A healthcare system in which the government provides insurance coverage for all or most residents of a country, often funded through taxes.