Suppose the Government Increases Spending to Fund Tuition for Qualified

question 116

Multiple Choice

Suppose the government increases spending to fund tuition for qualified university students.Automatic stabilizers will _____ the _____ effect of the _____ in aggregate demand.

• A) increase;contractionary;decrease
• B) decrease;contractionary;increase
• C) increase;expansionary;increase
• D) decrease;expansionary;increase

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Definitions:

Oral Contract

An agreement made through spoken words rather than written documentation, which can be legally binding in some cases.

Statute of Frauds

The Statute of Frauds is a legal doctrine that requires certain types of contracts to be in writing and signed by the parties involved to be enforceable.

Oral Evidence

Testimony given by a witness in court or during a legal proceeding that is spoken and not written.

Written Contract

A legally binding agreement between two or more parties that is put in writing and signed by the parties.