When Spending by the Federal Government Exceeds Net Taxes

question 115

Multiple Choice

When spending by the federal government exceeds net taxes,

• A)the price level tends to rise
• B)the money supply must fall
• C)the aggregate demand curve shifts leftward
• D)aggregate supply moves leftward
• E)there is a federal budget surplus

---

Definitions:

All You Can Afford

This is a budgeting approach where advertising spending is based on the amount of funds a company has available, rather than being tied to specific performance objectives.

Evaluation Stage

Part of the consumer decision process where alternatives are appraised and weighed before making a final purchasing decision.

Hierarchy of Effects

A model that outlines the sequential stages a consumer goes through in the process from unawareness of a brand to purchase decision, including awareness, interest, desire, and action.

Adoption

The acceptance and integration of new ideas, technologies, or products into regular use by consumers or within an organization.