Which of the Following Leads to a Decrease in Real

question 132

Multiple Choice

Which of the following leads to a decrease in real GDP?

• A)An increase in government spending.
• B)An increase in the inflation rate in other countries, relative to the inflation in Australia.
• C)An increase in interest rates.
• D)Households have increasingly optimistic expectations about future income.

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Definitions:

Criterion

A standard, rule, or principle by which something may be judged or decided, often used in decision-making processes.

Size of Fund

Refers to the total amount of capital that a fund, such as a mutual fund, hedge fund, or venture capital fund, has available for investment.

Investor

An individual or entity that allocates capital with the expectation of receiving financial returns, typically involving a level of risk.

Private Placement

The sale of securities directly to a small number of private investors rather than through a public offering, often used by smaller companies to raise capital.