Suppose That the Government Could Stimulate Spending in One of the Following

question 232

Multiple Choice

Suppose that the government could stimulate spending in one of the following expenditure categories.In which of these categories would the spending increase contribute most to an expansion of production possibilities?

• A) consumption goods
• B) government purchases
• C) net exports
• D) capital goods

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Definitions:

Satisficing

A decision-making strategy that aims for a satisfactory or adequate solution rather than the optimal one.

Work Schedule

The planned hours and days that an employee is expected to work within a given period.

Evaluates

The process of assessing or determining the value, significance, or condition of something, often for the purpose of making decisions or drawing conclusions.

Escalation of Commitment

Is a pattern of behavior in which an individual or group continues to invest in a decision despite evidence of its ineffectiveness or the likelihood of negative outcomes.