If Government Spending Is Increased Without a Raise in Taxes,net

question 80

Multiple Choice

If government spending is increased without a raise in taxes,net exports will eventually decrease due to a rise in interest rates.This phenomenon is known as the

• A)supply-side effect.
• B)marginal boost.
• C)Paris factor.
• D)net export effect.

---

Definitions:

Subjective Method

A method of assigning probabilities on the basis of judgment.

Probabilities

Measures of the likelihood that an event will occur, expressed as a number between 0 and 1.

Probability Values

Numerical values that represent the likelihood of the occurrence of a specific event or outcome.

Mutually Exclusive

Two or more events that cannot happen at the same time; the occurrence of one event precludes the occurrence of the other(s).