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:

Partnership Income

The share of earnings distributed to partners in a partnership business, typically based on the terms of the partnership agreement.

Personal Income

Personal income is the total earnings received by an individual, including wages, investments, and benefits, used to evaluate financial health.

Capital Expenditure

Resources utilized by an organization for the purpose of purchasing, improving, and preserving tangible assets like land, factories, or machinery.

Cash Flow

The sum of monetary movements into and from a business, critically defining its liquid cash assets.