Deficit Spending Occurs When

question 136

Multiple Choice

Deficit spending occurs when

• A)Consumers spend less than their income.
• B)Investment spending declines.
• C)Net export spending alters macroeconomic outcomes.
• D)Government spending becomes greater than the tax revenues collecteD.Deficit spending refers to the use of borrowed funds or sale of government assets to finance government expenditures that exceed tax revenues.

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Definitions:

Inferential Statistics

This is a branch of statistics that makes predictions or inferences about a population based on a sample of data taken from that population.

Null Hypothesis

A default hypothesis that there is no effect or no difference, and any observed difference is due to sampling or experimental error.

Research Hypothesis

A specific, testable prediction about the relationship between two or more variables that a study aims to prove or disprove.

Descriptive Statistics

Statistical measures that describe the results of a study; descriptive statistics include measures of central tendency (e.g., mean), variability (e.g., standard deviation), and correlation (e.g., Pearson r).