Which of the Following Are Effects of an Increase in Government

question 2

Multiple Choice

Which of the following are effects of an increase in government spending financed by a tax increase?

• A)the tax increase reduces consumption;the change in the interest rate reduces residential construction
• B)the tax increase reduces consumption;the change in the interest rate raises residential construction
• C)the tax increase raises consumption;the change in the interest rate reduces residential construction.
• D)the tax increase raises consumption;the change in the interest rate reduces residential construction

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Definitions:

Advanced Math

A field of study focusing on mathematical concepts and techniques that are more complex and abstract than basic arithmetic or algebra.

Insulin

A hormone produced by the pancreas that regulates blood sugar levels by facilitating the uptake of glucose into tissues, essential for energy production.

Glucose

An elementary sugar essential for energy in living entities and a foundational element of many carbohydrate structures.

Hypothalamus

A small region of the brain's base playing a crucial role in many functions, including releasing hormones, regulating body temperature, and maintaining daily physiological cycles.