Which of the Following Leads to a Decrease in Real

question 261

Multiple Choice

Which of the following leads to a decrease in real GDP?

• A)an increase in government spending
• B)an increase in the inflation rate in other countries, relative to inflation in Canada
• C)an increase in interest rates
• D)households having increasingly optimistic expectations about future income
• E)an increase imports

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Definitions:

Millions

A numeral representation indicating one thousand times one thousand, or 1,000,000.

Non-Cash Expenses

Expenses recorded on an income statement that do not involve a direct cash outflow, such as depreciation.

Millions

A numerical value or unit representing one million units of a currency or indicating a quantity of one million in number.

Cash Flow

The total accounting of funds moving in and out of a business, directly affecting its capability to remain solvent.