A Temporary Increase in Government Purchases, When Total Output Held

question 55

Multiple Choice

A temporary increase in government purchases, when total output held constant, would

• A) reduce desired consumption but would increase desired national saving.
• B) increase desired consumption but would reduce desired national saving.
• C) increase both desired consumption and desired national saving.
• D) reduce both desired consumption and desired national saving.

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Definitions:

Distraction

A technique or measure used to divert attention away from something, often to reduce pain or distress.

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The period following a surgical operation, during which recovery and monitoring of the patient occur.

Diaphoretic

Describes profuse sweating, often a symptom of an underlying medical condition or the body's response to certain drugs.

Drug Tolerance

The phenomenon where a person's response to a drug decreases with its continuous use, necessitating higher doses to achieve the same effect.