If a 200 Billion Dollar Increase in Government Spending Occurs

question 92

Multiple Choice

If a 200 billion dollar increase in government spending occurs when the Fed seeks to maintain a fixed interest rate then

• A)there is no crowding out,the LM curve shifts to offset the shift in the IS curve.
• B)there is no crowding out,the monetary policy is fixes as is the LM curve fixed.
• C)crowding out is assured since monetary policy is fixed.
• D)crowding out is assured since the Fed will accommodate the spending increases.

---

Definitions:

PCR Cycle

A series of temperature-controlled steps in Polymerase Chain Reaction that allows for the replication and amplification of a specific DNA segment.

Inactivate

To make something inactive or ineffective, often used in the context of deactivating enzymes, viruses, or genes.

Polymerase Chain Reaction

A laboratory technique used to amplify DNA segments, enabling detailed analysis and study of genetic material.