Which of the Following Leads to a Decrease Real GDP

question 46

Multiple Choice

Which of the following leads to a decrease real GDP?

• A) an increase in government spending
• B) an increase in the inflation rate in other countries, relative to the inflation in the United States
• C) an increase in interest rates
• D) households have increasingly optimistic expectations about future income

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Definitions:

Observational Learning

Learning that occurs through observing the behavior and outcomes of others, a fundamental component of social learning theory.

Albert Bandura

A psychologist known for his work on social learning theory and the concept of self-efficacy.

Swing

A type of seat suspended from a structure or mechanism, designed for an individual to sit and move back and forth, or a musical genre characterized by a strong rhythm suitable for dancing.

Baseballs

Hard balls used in the game of baseball, made of cork, rubber, and wrapped in leather, designed for hitting, pitching, and catching in the sport.