What Would Be the Cause of Total Spending Rising from One

question 135

Multiple Choice

What would be the cause of total spending rising from one year to the next?

• A)The economy must be producing a larger output of goods and services.
• B)Prices at which goods and services are sold must be higher.
• C)Either the economy must be producing a larger output of goods and services, or the prices at which goods and services are sold must be higher, or both.
• D)Employment or productivity must be rising.

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Definitions:

Debt Securities

Financial instruments representing money borrowed that must be repaid, with terms defining the interest rate and maturity date.

Equity Securities

Financial instruments that represent ownership in a company, such as stocks, granting holders a claim on the company's assets and earnings.

Financial Assets

Assets that derive value because of a contractual claim, such as stocks, bonds, bank deposits, and other investments.

Derivative Securities

Financial instruments whose value is derived from the value of an underlying asset, such as futures, options, and swaps.