In Which of the Following Ways Does Government Affect the Consumption

question 7

Multiple Choice

In which of the following ways does government affect the consumption component of planned aggregate expenditures?

• A)through net taxes,which change disposable income
• B)by purchasing goods and services,which increase consumption
• C)by using subsidies to encourage firms to invest
• D)by using net taxes to encourage firms to invest
• E)by producing public goods

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Definitions:

Default Judgment

A judgment entered by a court against a defendant who has failed to appear in court to answer or defend against the plaintiff’s claim.

Affirmative Defense

A response to a plaintiff’s claim that does not deny the plaintiff’s facts but attacks the plaintiff’s legal right to bring an action. An example is the running of the statute of limitations.

Negligence

The failure to exercise the standard of care that a reasonable person would exercise in similar circumstances.

Electronic Discovery

The process by which electronic data is sought, located, secured, and searched with the intent of using it as evidence in a legal case.