Suppose There Is an Increase in Government Spending

question 71

Multiple Choice

Suppose there is an increase in government spending.To stabilize output,the Federal Reserve would

• A)increase government spending.
• B)increase the money supply.
• C)decrease government spending.
• D)decrease the money supply.

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Definitions:

Provincial Legislation

Laws and regulations enacted by the legislative authority of a province or territory in a country.

Fundamental Justice

A principle underlying the legal system that ensures fair legal processes and respect for human rights.

Parliamentary Supremacy

The principle that Parliament has the supreme authority to make or repeal any law.

Confederation

The process that united the British colonies in North America as the Dominion of Canada in 1867.