A Decrease in Government Purchases or an Increase in Taxes

question 57

Multiple Choice

A decrease in government purchases or an increase in taxes, other things being equal, will tend to:

• A)increase interest rates and increase net exports as a result.
• B)increase interest rates and decrease net exports as a result.
• C)decrease interest rates and increase net exports as a result.
• D)decrease interest rates and decrease net exports as a result.

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Definitions:

Archaea

Prokaryotic organisms that are members of the domain Archaea.

Endospores

Durable, non-reproductive structures formed within some bacteria, enabling them to survive extreme conditions.

Unfavorable Conditions

Environmental situations or contexts that pose challenges or threats to the survival and thriving of organisms.

Antibiotics

Antibiotics are drugs that combat bacterial infections by killing or inhibiting the growth of bacteria, crucial in modern medicine for treating various infections.