How do fears of future economic problems affect GDP?
(A) Government will spend less and save money for a future economic contraction; GDP will be reduced.
(B) Consumers will spend more money in the short term to prevent future economic problems; GDP will be pushed up.
(C) Businesses will invest more money in the short term to ensure higher profits in the future; GDP will be pushed up.
(D) Consumers will spend less and save money in case future economic problems affect them; GDP will be reduced.
Ans: (D) Consumers will spend less and save money in case future economic problems affect them; GDP will be reduced.
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What are the limitations to government’s role in the economy?
Please provide the best answer for the statement.
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A. 0. B. 1. C. 4. D. 5.