Which of the Following Leads to an Increase Real GDP

question 59

Multiple Choice

Which of the following leads to an increase real GDP?

• A) a decrease in government spending
• B) a decrease in the inflation rate in other countries, relative to the inflation in the United States
• C) a decrease in interest rates
• D) households have increasingly pessimistic expectations about future income

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Definitions:

Budgeting

The process of creating a plan to spend your money, allocating future income towards expenses, savings, and debt repayment.

Equipment

Tangible property used in operations, such as machinery or computers, which has a useful life beyond a single reporting period.

Furniture

Tangible, movable objects intended to support various human activities such as seating, eating, and sleeping, often considered a fixed asset in business accounting.

Fully Depreciated

The status of an asset after its cost has been completely written off over its useful life.