Suppose the Budget Deficit Falls from One Year to the Next

question 39

Multiple Choice

Suppose the budget deficit falls from one year to the next, but there has been no change in the government's fiscal policy. The change in the budget deficit can be explained by

• A)a rising real interest rate.
• B)a rise in the cyclically adjusted deficit.
• C)a change in the stance of fiscal policy.
• D)a rising real GDP.
• E)a rise in the primary budget deficit.

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Definitions:

Florists

Professionals or businesses specializing in the arrangement and sale of flowers and ornamental plants for various occasions.

Similar Substitutes

Products or services that can be used in place of each other but share close similarities in features or functions.

Product Differentiation

The process of distinguishing a product or service from others in the market to make it more attractive to a particular target market.

Whitening Agents

Substances used to lighten the color of materials, such as textiles, paper, and in cosmetic formulations to lighten the skin.