Which of the Following Actions Is not Helpful in Reducing

question 35

Multiple Choice

Which of the following actions is not helpful in reducing traffic congestion in urban areas?

• A) demolition of freeways that sliced through CBDs
• B) congestion charges - motorist must pay to drive into CBDs
• C) tolls
• D) constructing large multi-level parking structures in CBDs
• E) bans - some cities have banned cars altogether from portions of the CBDs

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Definitions:

Planned Investment

Expenditures intended by businesses to purchase physical capital goods, which are expected to produce future benefits.

Spending Multiplier

The ratio of change in aggregate output (or income) to a change in spending that caused the change, showing how initial spending leads to increased total spending.

Autonomous Investment

Investment that does not change in response to alterations in the overall economy or income levels, such as public infrastructure investments.

Equilibrium Real GDP

The level of Gross Domestic Product where aggregate supply equals aggregate demand, adjusted for inflation.