One Consequence of Government Deficits Is

question 53

Multiple Choice

One consequence of government deficits is

• A) lower interest rates.
• B) lower taxes.
• C) reduced government borrowing.
• D) reduced consumer spending.
• E) redistribution of the tax burden from one group to another.

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Definitions:

Intra-entity Gain

Profit resulting from transactions between divisions or units within the same company, not affecting the overall financial position of the company.

Accrual-based Net Income

The measure of a company's financial performance that includes earned revenues and incurred expenses that have yet to be received or paid.

Upstream Intra-entity Gross Profits

Upstream intra-entity gross profits are profits derived from transactions between a parent company and its subsidiary, where the subsidiary sells goods or services to the parent, requiring careful account adjustments when preparing consolidated financial statements.

Noncontrolling Interest

The portion of equity in a subsidiary not attributable directly or indirectly to the parent company.