Which of the Following Tends to Increase Economic Growth

question 135

Multiple Choice

Which of the following tends to increase economic growth?

• A)a decrease in taxes, holding government spending constant
• B)a reduction in government spending, holding taxes constant
• C)an increase in government spending, holding taxes constant
• D)an increase in taxes, holding government spending constant

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Definitions:

Carpetbagger

A derogatory term originally used to describe Northerners who moved to the South after the American Civil War to profit from the Reconstruction.

Maine

The northeasternmost state in the United States, known for its scenic coastlines, lighthouses, and as a major producer of lobsters.

South

A region in the United States characterized by its unique cultural, historical, and economic attributes, often distinguished by its geographic location below the Mason-Dixon line.

Bargain of 1877

Deal made by a Republican and Democratic special congressional commission to resolve the disputed presidential election of 1876; Republican Rutherford B. Hayes, who had lost the popular vote, was declared the winner in exchange for the withdrawal of federal troops from involvement in politics in the South, marking the end of Reconstruction.