Increases in Government Spending Will Lower the Long-Term Growth Rate

question 10

Multiple Choice

Increases in government spending will lower the long-term growth rate of GDP if it lowers ________ and the government purchases ________ goods and not ________ goods.

• A) net export spending; investment; consumption
• B) consumption; investment; consumption
• C) net export spending; consumption; investment
• D) investment; consumption; investment

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Definitions:

Parental Investment Theory

The idea that a species’ mating patterns depend on what each sex has to invest—in the way of time, energy, and survival risk—to produce and nurture offspring.

Evolutionary Explanations

Theories or hypotheses that use the principles of evolution to explain the development of physical traits, behaviors, or phenomena over time.

Empirically Supported

Validated through observation or experience rather than theory or pure logic.

Physical Characteristics

Refer to the observable bodily traits of an individual, such as height, eye color, muscle composition, and facial features.