When Comparing a $100 Billion Increase in Government Expenditure to a $100

question 78

Multiple Choice

When comparing a $100 billion increase in government expenditure to a $100 billion decrease in tax revenue,the effect of the increase in government expenditure on aggregate demand is

• A)greater than the effect of the tax decrease.
• B)equal to the effect of the tax decrease.
• C)less than the effect of the tax decrease.
• D)positive whereas the effect of the tax decrease is negative.
• E)negative whereas the effect of the tax decrease is positive.

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Definitions:

Standard Deviation

A measure of the amount of variation or dispersion in a set of values.

Confidence Interval

A range of data figures, acquired from sample analysis, predicted to include the value of an unacknowledged population characteristic.

Confidence Interval

A range of values, derived from sample statistics, that is believed to contain the true value of a population parameter with a specified level of confidence.

Population Proportion

The fraction or percentage of members in a population that exhibit a particular trait or characteristic.