The effect of governmental expenditures on the total economy varies with both the level of utilization of labor and capital in the economy at the time of the expenditure, and the segment of the economy which receives the expenditure. If the economy as a whole or the segment of the economy which is the focus of the expenditure is operating at capacity or close to capacity, then the expenditure&39;s major effects will tend to be inflationary, and will not generate much employment of capital and labor. If the economy or sector is operating at much less than full employment, the expenditure will produce a genuine (non-inflationary) rise in the GNP.

A true measure of the effect of governmental increase in the amount of money made available, then, is not the simple dollar value of the initial injection but the cumulative effect of this injection through spending and re-spending. In the optimum case the initial expansion of income flow could be great enough to produce tax revenues in excess of the original "deficit spending" or the "tax cut", so that deficits are not only smaller than the increased GNP but are recouped. In Keynesian economics the fundamental point of government policy clearly is not budget-balancing but spending in the event of unused productive capacity and unemployment. Spending increases productivity. This productivity resulting from federal spending has overwhelmed the older economic myths of the balanced budget where government is conceived of as just another business firm.

In exploring the effect of El Nino, the author mainly focuses on

A．its violence.

B．its conditions.

C．its regularity

D．its features.

Other tests have shown that laughter can reduce the effect of 48______________on the body.

The author suggests in the last paragraph that the effect of peer pressure is______.

A．harmful

B．desirable

C．profound

D．questionable

The effect that exhaust gas recirculation can reduce NOX formation is partly due to a reduction of the()concentration in the combustion zone and partly due to the content of water and carbon dioxide in the exhaust gas.

A.Oxygen

B.Nitrogen

C.Sulphur

D.Freon

Beyond that, the efforts of many governments to bail out entire industries risk taking on a protectionist tone. Washington is again a case in point as it spends billions to rescue Detroit's Big Three, with not a penny going to Toyota or BMW, both of which are hurting from the downturn and both of which are gigantic investors in the U.S. and employers of tens of thousand of Americans. Another looming problem could concern the aircraft industry, as just last week the French government decided to subsidize financing for Airbus④ not just with normal export financing but with money heretofore reserved for rescuing banks. How long before Washington and Boeing follow suit?

The sharp increase in the number of shareholders at the end of 1984 was due to______.

What is the talk mainly about?

A．The effect of the Civil War on American literature.

B．A genre in American literature of the late nineteenth century.

C．The way in which American realism influenced U.S. society.

D．The body of literature written by Mark Twain.