Which Statement Is NOT a Reason Government Spending Sometimes Increases

question 143

Multiple Choice

Which statement is NOT a reason government spending sometimes increases growth?

• A) Spending can lower inflation and keep prices and wages steady.
• B) Spending can move unemployed factors of production into productive activities.
• C) Spending can encourage additional private investment.
• D) Spending can increase consumer confidence.

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Definitions:

Cash

The most liquid form of assets, representing currency or assets that can be immediately turned into currency.

Prepaid Expense

An expense that is paid for in advance and recorded as an asset until it is actually incurred.

Double-Entry Bookkeeping

An accounting system in which the recording of each transaction affects two or more accounts and the total of the debits is equal to the total of the credits.

Debiting

The process of recording an entry on the left side of the accounting ledger, which increases asset or expense accounts and decreases liability, equity, or revenue accounts.