In an Open Economy,an Increase in Government Spending Will Cause

question 26

Multiple Choice

In an open economy,an increase in government spending will cause

• A)a reduction in domestic output.
• B)a reduction in imports.
• C)a reduction in net exports.
• D)all of the above
• E) none of the above

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Definitions:

Technological Advance

Improvements in technology, leading to more efficient production processes, new product features, or entirely new products.

Economic Growth

An increase in the production of goods and services in an economy over a period of time, typically measured by GDP.

The United States

A country in North America comprising 50 states, characterized by a federal form of government and known for its economic and military power.

The Former Soviet Union

A term referring to the socialist state that existed from 1922 to 1991, comprising Russia and several other republics.