If China's Government Runs a Budget Surplus and There Is

question 195

Multiple Choice

If China's government runs a budget surplus and there is no Ricardo- Barro effect, there will be
In the supply of loanable funds, private saving _ _ and investment .

• A) an increase; increases; increases
• B) a decrease; decrease; increases
• C) a decrease; increases; increases
• D) an increase; decreases; increases

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Definitions:

Insurance Premium

The amount of money an individual or organization pays for an insurance policy, providing coverage against specific risks over a defined period.

Expected Loss

a calculation used in finance and insurance to estimate the average financial loss or cost associated with an investment or insurance policy over a period.

Adverse Selection

A situation in which one party in a transaction has more information than the other, leading to an imbalance and potentially poor market outcomes, commonly seen in insurance markets.

Insurance

A financial product or agreement that provides compensation for specific losses or damages in return for payments made.