Which of the Following Would Increase the Size of the Government

question 73

Multiple Choice

Which of the following would increase the size of the government purchases multiplier?

• A)an increase in the tax rate
• B)an increase in the quantity of imports purchased by households from an increase in income
• C)a decrease in the amount of consumption spending by households from an increase in income
• D)a decrease in the amount saved by households from an increase in income
• E)an increase in the importance of government spending to the economy

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Definitions:

Democratic Groups

Groups that operate under the principle of democracy, where decisions are made collectively and each member has an equal vote or say.

Productive

Yielding positive results or benefits; effective in achieving intended outcomes.

Aggression

A range of behaviors that can result in both physical and psychological harm to oneself, others, or objects in the environment.

True Group

A collection of individuals who are interdependent in their tasks, have shared objectives, see themselves as a cohesive unit, and are recognized by others as a group.