As the Savings Rate in the Private Sector Rises

question 53

Multiple Choice

As the savings rate in the private sector rises:

• A) the government spending multiplier will also rise.
• B) aggregate demand will be less responsive to changes in fiscal policy.
• C) increases in government spending become a more effective means of stimulating aggregate demand.
• D) the crowding out effect will have more of a negative effect on aggregate demand.

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Definitions:

Health Insurance Coverage

A type of insurance that covers the whole or a part of the risk of an individual incurring medical expenses, spreading the risk over many individuals.

Managed Care

A healthcare delivery system organized to manage cost, utilization, and quality, often leveraging networks of contracted healthcare providers and services.

Surgical Procedures

Surgical procedures are medical operations conducted to diagnose or treat illnesses, injuries, or deformities, often involving cutting into the body.

Approval

The consent or agreement to a plan, idea, or action.