Which of the Following Is True of Government Purchases

question 21

Multiple Choice

Which of the following is true of government purchases?

• A)Government purchases are independent of the price level.
• B)Government purchases are independent of the level of real GDP.
• C)Government purchases are independent of consumption.
• D)Government purchases are independent of investment.
• E)Government purchases are independent of the amount saved by households.

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Definitions:

Monopolistic Practice

Refers to the actions or strategies by a company that has significant market power to manipulate the market to its advantage, often at the expense of competitors and consumers.

Generic

A term used to describe products or items not sold under a specific brand name, often perceived as lower in cost and sometimes in quality.

Tying Arrangement

A sales tactic where a seller requires the buyer to purchase a secondary product or service together with the primary product.

Corrective Advertising

A form of advertising mandated by regulatory bodies to correct misleading or false claims made in previous advertisements.