_____, the Lesser Will Be the Effect of an Increase

question 9

Multiple Choice

_____, the lesser will be the effect of an increase in government spending on real GDP.

• A) The smaller the crowding-out effect
• B) The smaller the percentage of government spending financed by tax increases
• C) The larger the government budget surplus
• D) The more rapidly money is converted into goods
• E) The steeper the aggregate supply curve

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Definitions:

Exosystem

A concept in ecological systems theory referring to the larger societal conditions that affect a person's immediate environment but with which the individual does not interact directly.

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