Which of the Following Is an Effect of an Increase

question 87

Multiple Choice

Which of the following is an effect of an increase in government purchases?

• A)It decreases interest rates.
• B)It results in a net decrease in aggregate demand.
• C)It crowds out investment spending by business.
• D)It decreases money demand.

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Definitions:

Standardize Intelligence Tests

Psychometric tests that are designed and administered in a consistent manner to measure aspects of an individual's intelligence or cognitive abilities.

Mental Age

A measure of a person's cognitive abilities in comparison to what is typical for their chronological age.

Eugenics

A controversial and debunked philosophy advocating for the improvement of the human species through selective breeding or genetic manipulation.

Francis Galton

A 19th-century scientist known for his pioneering work in eugenics, statistics, and the study of human intelligence.