Use the Following to Answer Questions

question 41

Multiple Choice

Use the following to answer questions:
-(Figure: Loanable Funds Market III) Use Figure: Loanable Funds Market III.If the government in a closed economy finances deficits by selling bonds and it decides to decrease defence spending by $200 billion,the decrease in government spending will encourage _____ in additional private investment spending.

• A) $400 billion
• B) $200 billion
• C) $100 billion
• D) $10 billion

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Definitions:

Fordism

An economic model based on mass production and consumption, characterized by standardized products, high wages, and assembly line manufacturing.

Assembly Line

A manufacturing process in which parts are added to a product in a sequential manner to create a finished product more efficiently.

Mass Manufacturing

The large-scale production of goods using machinery and assembly lines, which typically results in high volumes of standardized products.

Production Stability

The consistency and reliability of manufacturing or production processes over time, minimizing fluctuations and disruptions to ensure continuous output.