In the Long Run,most Economists Agree That a Permanent Increase

question 30

Multiple Choice

In the long run,most economists agree that a permanent increase in government spending leads to

• A)no decrease in private spending.
• B)a decrease in private spending by less than the amount that government spending increased.
• C)a decrease in private spending by the same amount that government spending increased.
• D)a decrease in private spending by more than the amount that government spending increased.

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Definitions:

Term Deposit

A bank deposit that has a fixed term or period of time until you can access your money, often with a higher interest rate than savings accounts.

Promissory Note

A financial document in which one party promises to pay another party a definite sum of money at a specified future date or on demand.

Missing Value

A data point that is not recorded or is absent in a data set or analysis.

Simple Interest

Interest calculated on the principal amount of a loan or deposit without compounding.