A Structural Deficit Is One Where

question 44

Multiple Choice

A structural deficit is one where

• A) imports are greater than exports.
• B) government spending and income is disrupted by the deviations in the 'normal' economic cycle.
• C) a government's deficit is not dependent on movements in the economic cycle.
• D) all of these.

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Definitions:

Initial Value Method

An accounting method where investments are recorded at their original cost to the owner at the time of purchase, without subsequent adjustments for market changes.

Equity Method of Accounting

An accounting technique used to record investments in other companies, where the investment is initially recorded at cost and adjusted thereafter for the investor’s share of the investee’s income, losses, and dividends received.

Capital Account Balances

The amounts recorded in the capital account of a company or individual, reflecting initial investment plus retained earnings minus any withdrawals.

Liquidating

The process of converting assets into cash or cash equivalents by selling them.