The Immediate Effect of a Purchase of a Government Bond

question 21

Multiple Choice

The immediate effect of a purchase of a government bond on the gross domestic product (GDP) is_____.

• A)a decrease in consumption
• B)an increase in government spending
• C)an increase in investment
• D)a decrease in investment
• E)nonexistent,since no real goods and services have been produced

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Definitions:

Habit

A regular practice or routine that is hard to give up, often performed automatically and can influence one's health and behavior significantly.

Motivation

A mechanism that triggers, steers, and upholds activities focused on attaining objectives.

External Factors

Various outside influences that can affect a person's behavior, decisions, health, and psychological development, including social, environmental, and economic factors.

Gender

The range of characteristics pertaining to, and differentiating between, masculinity and femininity.