If You Spend More of Your Income on Consumption Goods

question 37

Multiple Choice

If you spend more of your income on consumption goods, which of the following will occur?

• A)The production of investment goods will fall.
• B)Economic growth will be stimulated.
• C)Investments in education will rise.
• D)For every dollar you spend on consumption, real GDP will fall by a dollar.
• E)The federal government will run a budget deficit.

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Definitions:

Leading Cause

A primary factor or condition that is responsible for a specific outcome, often used in the context of describing the most common reason for a disease or death.

Economic Status

A measure of a family's or individual's financial health and their ability to afford living expenses and necessities.

Enuresis

Failure to control the bladder (urination) after the normal age for control has been reached.

Bed-wetting

The unintentional passing of urine during sleep, typically concerning in children beyond the usual age of toilet training.