A Temporary Increase in Government Purchases Would ________ the Domestic

question 76

Multiple Choice

A temporary increase in government purchases would ________ the domestic real interest rate and ________ net desired saving (desired saving less desired investment) in the economy.

• A)lower; increase
• B)lower; decrease
• C)raise; increase
• D)raise; decrease

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Definitions:

Assigned Cycle Time

The preset duration within which a particular task or operation must be completed in a production process.

Efficiency

The ability to accomplish a task or goal with a minimum expenditure of time, effort, and cost, often evaluated in terms of productivity.

Cycle Time

The total time from the beginning to the end of a process, including both processing and waiting times.