Which of the Following Assumptions Is True of Government Spending

question 176

Multiple Choice

Which of the following assumptions is true of government spending and taxes?

• A) They do not depend on the level of GDP.
• B) They may be changed only through direct action by Congress.
• C) They change only when the price level changes.
• D) They change only upon executive order of the president of the United States.
• E) They are autonomous at low levels of GDP but not at higher levels of GDP.

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A statistical measure that represents the overall movement of a specific set of stocks, indicating the general health of the stock market.

Availability Heuristic

A mental shortcut that relies on immediate examples that come to a person's mind when evaluating a specific topic, concept, method or decision.

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The act of illegally using or obtaining government assistance benefits by knowingly providing false information or withholding information.

Welfare Abuse

The misuse or fraudulent use of government assistance programs designed to help those in need.