Increases in Government Spending Will Lower the Long-Term Growth Rate

question 60

Multiple Choice

Increases in government spending will lower the long-term growth rate of GDP if it lowers ________ spending and the government purchases ________ goods and not ________ goods.

• A)net export spending; investment; consumption
• B)consumption; investment; consumption
• C)net export spending; consumption; investment
• D)investment; consumption; investment

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