If the Government Increases Spending While Holding Taxes Constant, We

question 83

Multiple Choice

If the government increases spending while holding taxes constant, we expect

• A) an increase in investment spending by businesses too, as they anticipate future economic growth.
• B) a decrease in real saving as consumers follow suit and also increase borrowing.
• C) planned real investment spending by businesses to increase.
• D) interest rates to rise.

---

Definitions:

Substance Abuse

Engaging in harmful or dangerous activities involving psychoactive substances, including the use of alcohol and illegal drugs.

Increased Risk

A situation or condition that raises the likelihood of experiencing a negative outcome or developing a specific illness.

Enmeshed Family Patterns

Enmeshed family patterns refer to overly close and intertwined familial relationships where boundaries are blurred and independence is limited.

Eating Disorders

Mental disorders characterized by abnormal eating habits that negatively affect a person's physical or mental health.