The Effect of a Sustained Increase in Government Spending or Investment

question 140

True/False

The effect of a sustained increase in government spending or investment on aggregate output is larger in an open economy than in a closed economy.

---

Definitions:

Consent Decree

A legal agreement that resolves a dispute between two parties without admission of guilt (but with the court still having jurisdiction).

Cease and Desist Order

A legal order issued by a government authority or court directing an individual or entity to stop an alleged illegal activity.

Misleading Advertisement

Marketing materials that deceive or mislead consumers about the nature or value of a product.

Federal Consumer Credit Protection Act

A United States law enacted in 1968 aimed at protecting consumers in financial transactions by requiring clear disclosure of terms and costs of credit and establishing consumer rights regarding credit billing and electronic fund transfers.