Which of the Following Statements Is True of Government Spending

question 41

Multiple Choice

Which of the following statements is true of government spending?

• A) An increase in government spending raises the equilibrium level of income by a multiple of the original spending increase.
• B) Government spending is a part of monetary policy, not fiscal policy.
• C) A decline in government spending brings about an expansion in the economy.
• D) An increase in government spending increases the recessionary gap in the economy.
• E) An increase in government spending shifts the aggregate demand curve downward by a fraction of the rise in government spending.

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Definitions:

Solicit Customers

The act of actively seeking out individuals or entities to purchase goods or services.

Copy Customer Lists

Refers to the act of duplicating lists of customers' information, often considered sensitive, from one business for use in another, potentially breaching confidentiality agreements.

Constructive Dismissal

A situation in employment law where an employer makes significant changes to an employee's job conditions that effectively force the employee to resign.

Obligation to Mitigate

The duty of a party who has suffered damages to take reasonable action to minimize the amount of the loss.