Which Statement Is True

question 120

Multiple Choice

Which statement is true?

• A)In China today,the private sector produces no more than 10% of the country's goods and services.
• B)Under communism in the Soviet Union,the private sector was almost as large as the government sector.
• C)In the American economy today,the public sector is almost as large as the private sector.
• D)All of the statements are true.
• E)None of the statements are truE.

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Definitions:

Fiscal Policy

Government policies concerning taxation and spending that are aimed at influencing macroeconomic conditions, including unemployment, inflation, and economic growth.

Fiscal Policy

Government policies related to taxation and spending aimed at influencing the economy.

MPC

Marginal Propensity to Consume, a metric in economics that measures the proportion of income changes that is spent on consumption.

Crowding Out

A decrease in investment that results from government borrowing.