Suppose the Government Share of GDP Is 25 Percent and the Consumption,investment,and

question 106

Multiple Choice

Suppose the government share of GDP is 25 percent and the consumption,investment,and net export shares of GDP are 60,12,and 3 percent,respectively.If the federal government introduces a national sales tax (a federal tax on consumption) ,then we would expect

• A)the government share of GDP to increase.
• B)the interest rate to decrease.
• C)the interest rate to increase.
• D)the government share of GDP to decrease.
• E)the net consumption share of GDP to increase.

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Definitions:

Tuberculosis

An infectious disease caused by the bacterium Mycobacterium tuberculosis, primarily affecting the lungs but can spread to other organs.

Partial Pressure

The pressure that a single gas component in a mixture of gases would exert if it occupied the entire volume alone at the same temperature.

Pulmonary Capillaries

Tiny blood vessels located within the lungs where gas exchange, including the uptake of oxygen and release of carbon dioxide, occurs.

Oxyhemoglobin-Dissociation Curve

A graph showing the relationship between the partial pressure of oxygen and the saturation of hemoglobin with oxygen.