Which of the Following Leads to a Decrease Real GDP

question 31

Multiple Choice

Which of the following leads to a decrease real GDP?

• A)an increase in government spending
• B)an increase in the inflation rate in other countries,relative to the inflation in the United States
• C)an increase in interest rates
• D)Households have increasingly optimistic expectations about future income.

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Definitions:

US$

The US dollar, symbolized as USD, is the official currency of the United States of America and used as a benchmark in the global economy.

Strengthens

In financial terms, it often refers to the appreciation or increase in value of an asset or currency.

C$

Emblem denoting the Canadian Dollar, Canada's official currency.

Euro

The accepted form of money in the eurozone, made up of 19 out of the 27 member states of the European Union.