Increases in Government Spending Financed Through Additional Borrowing Will Typically

question 137

Multiple Choice

Increases in government spending financed through additional borrowing will typically:

• A) provide more stimulus than when government spending is financed through higher taxes.
• B) lead to higher taxes.
• C) stimulate both consumption and investment.
• D) lead to higher interest rates.

---

Definitions:

Peripheral Fibers

Nerves located outside the central nervous system, involved in the transmission of sensory and motor signals to and from the central body.

Brady-

A prefix used in medical terminology to denote a slowness in rate or frequency, such as in bradycardia (slowness of the heart rate).

Hyper-

A prefix denoting above normal, excessively high, or increased in quantity.

Hypo-

A prefix denoting below, under, or less than normal, often used in medical terms to indicate a deficient or decreased state.