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.

---

Definitions:

Emotion-Focused Coping

Strategies to manage or reduce the emotional distress associated with a situation.

Catastrophe

A sudden and widespread disaster or event that causes significant damage or suffering.

Hurricane

A powerful tropical storm characterized by strong winds and heavy rain, forming over warm ocean waters.

Severely Damaged

Significantly harmed or altered, usually referring to objects, structures, or psychological state, impairing functionality or integrity.