Other Things Equal, an Increase in Government Spending ________ the Equilibrium

question 203

Multiple Choice

Other things equal, an increase in government spending ________ the equilibrium interest rate and ________ equilibrium output.

• A) increases; increases
• B) increases; decreases
• C) decreases; increases
• D) decreases; decreases

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Definitions:

Convergent Thinking

A thought process that narrows in on the single best solution to a problem.

Problem Solver

An individual or tool that determines and implements a solution to a complex issue or challenge through analysis and creative thinking.

Telegraphic Speech

A form of communication often used by young children that includes only the most essential words to convey a message.

Apes

Primates without tails, including gorillas, chimpanzees, orangutans, and gibbons, known for their intelligence and social behaviors.