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:

Mass Merchandiser

Retail businesses that sell a large variety of goods to consumers at low prices, typically in large stores or online.

Wal-Mart

An American multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores.

Function-Level Goal

Specific objectives set for different functional areas within a company, such as marketing, finance, or production, to contribute to overall business strategy.

Specific Departments

Specialized units or divisions within an organization, each focusing on a certain area of operation or expertise.