One Way That an Economy Can Grow in the Long

question 96

Multiple Choice

One way that an economy can grow in the long run is by:

• A) people saving some of their income and having it invested in capital goods by firms.
• B) people spending more of their income on consumption and less on saving.
• C) governments running continual budget deficits.
• D) people consuming more than they earn.

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Definitions:

Federal Government

The national government of a federal country, where power is divided between a central authority and constituent units, responsible for areas like defense, foreign policy, and regulating interstate commerce.

Economic Independence

The condition of having sufficient personal wealth to live, without needing to work for basic necessities, allowing for financial self-sufficiency.

American System

An economic plan that played a prominent role in American policy during the first half of the 19th century, advocating for a strong role for federal government in the economy, including a national bank, high tariffs, and internal improvements.

Mass Followings

The phenomenon where a large number of individuals support a particular leader, movement, or social trend, often seen in contexts ranging from celebrity fandom to political campaigns.