In an Open Economy,a Reduction in Government Spending Will Cause

question 8

Multiple Choice

In an open economy,a reduction in government spending will cause

• A)an increase in domestic output.
• B)an increase in imports.
• C)an increase in net exports.
• D)all of the above
• E) none of the above

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Definitions:

Flexibility

The quality of being adaptable or variable, especially the ability to respond to changes in circumstances or environments.

Productivity

The measure of efficiency in converting inputs into useful outputs, commonly used in analyzing the performance of businesses, economies, or individual workers.

Supervisory Costs

Expenses associated with overseeing and managing employees, including salaries of supervisors and costs related to training and supervising staff.

Flexible Benefit Plans

Employee benefit programs that allow workers to choose from a variety of pre-tax benefits, tailoring the package to their personal needs.