Which of the Following Statements Is Correct

question 28

Multiple Choice

Which of the following statements is correct?

• A) Sustained annual budget deficits will produce increased domestic investment.
• B) Sustained annual increases in domestic investment will produce smaller domestic capital stock.
• C) Smaller domestic capital stock will result in lower future output and income.
• D) A sustained budget deficit will have no effect on GDP.

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Definitions:

Free Recall

A test of memory in which a person must retrieve information learned earlier without the aid of or with very few external cues.

Savings

Money that has been set aside for future use, often stored in a bank or financial institution to accrue interest.

Procedural Memory

A type of long-term memory involved in learning and performing tasks that involve motor skills, such as riding a bike or typing, without conscious awareness of previous experiences.

Declarative

Pertaining to memories that can be consciously recalled, such as facts and events.