If Chinaʹs Government Runs a Budget Surplus and There Is

question 50

Multiple Choice

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

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Definitions:

Cash Equivalents

Short-term, highly liquid investments that are easily convertible into a known amount of cash.

Cash Burn

The rate at which a company spends its cash reserves before generating positive cash flow from operations.

Monthly Cash Expenses

The total amount of cash spent by an individual or organization on various expenses within a month.

Internal Control

Procedures and processes implemented by a company to safeguard its assets, ensure accurate financial reporting, and promote operational efficiency.