Some Economists Believe the Budget Deficit Is Directly Linked to the Trade

question 81

True/False

Some economists believe the budget deficit is directly linked to the trade deficit through real interest rates and the international value of the dollar.

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Definitions:

Social Needs

Human desires for belonging, affection, acceptance, and friendship, which are significant in driving consumer behavior.

Safety Needs

The requirement for physical security, stability, and freedom from fear, as part of Maslow's hierarchy of needs.

Maslow Hierarchy

A theory in psychology proposed by Abraham Maslow that categorizes human needs into five levels, from basic physiological needs to self-actualization.

Self-actualization

The act of fulfilling or realizing one's abilities and potential, regarded as an innate motivation.