An Increase in Government Spending Can Reduce Real GDP Growth

question 256

Multiple Choice

An increase in government spending can reduce real GDP growth if:

• A) most government spending is used to reduce the national debt.
• B) decreases in private spending more than offset the increase in government spending.
• C) taxes do not increase enough to finance the increase in government spending.
• D) the credibility of the government is too high.

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Definitions:

Corporate Citizenship

The behavior of a company viewed in terms of its contribution to society through its ethical business practices and social responsibility initiatives.

UN Global Compact

A United Nations initiative to encourage businesses worldwide to adopt sustainable and socially responsible policies.

Procedural Justice

The fairness perceived in the processes and methods used to make decisions and resolve disputes.

Interpersonal Treatment

The manner in which individuals interact with and regard one another within personal and professional relationships.