Which of the Following Leads to an Increase Real GDP

question 270

Multiple Choice

Which of the following leads to an increase real GDP?

• A)a decrease in government spending
• B)a decrease in the inflation rate in other countries, relative to the inflation in the United States
• C)a decrease in interest rates
• D)households have increasingly pessimistic expectations about future income
• E)an increase in imports

---

Definitions:

Monthly

Occurring every month or once a month.

Compounded Quarterly

A process of calculating interest where the interest earned is added to the principal at the end of every three months, leading to an increase in the amount on which subsequent interest is calculated.

Semi-Annually

Occurring twice a year; typically refers to payments or adjustments made every six months.

Withdraw

To take money out of an account or to remove oneself from a particular situation.