Suppose There Is an Increase in Government Spending

question 71

Multiple Choice

Suppose there is an increase in government spending.To stabilize output,the Federal Reserve would

• A)increase government spending.
• B)increase the money supply.
• C)decrease government spending.
• D)decrease the money supply.

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Definitions:

Carbohydrates

Organic compounds consisting of carbon, hydrogen, and oxygen, which serve as a major source of energy for the body.

Saturated Fatty Acids

Fats whose molecular structures are saturated with hydrogen, such as fats in meat, butter, and eggs.

Animal Fat

Fat derived from animals, used in cooking and food production, and known for its high content of saturated fats and cholesterol.

Liquid at Room Temperature

A state in which a substance exists in a fluid form at approximately 20 to 25 degrees Celsius, indicating its physical property under standard conditions.