When a Government Has a Budget Surplus, the Surplus

question 175

Multiple Choice

When a government has a budget surplus, the surplus

• A) increases the world real interest rate.
• B) helps finance investment.
• C) crowds-out private saving.
• D) must be subtracted from private saving to get total saving.

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Definitions:

Acceptance

A key factor in the agreement element of a contract; consists of the agreement of one party, the offeree, to the terms of the offer in the contract made by the other party, the offeror.

Revoke

To officially cancel or withdraw an offer, privilege, or power that was previously given.

Defects

Imperfections or faults in a product, system, or process that can cause it to be unsafe, unreliable, or to fail to meet expectations.

Express Warranties

Explicit assurances provided by a seller about the quality, functionality, or nature of a product.