Which of the Following Is True About the Relationship Between

question 29

Multiple Choice

Which of the following is true about the relationship between the federal budget deficit and the federal debt?

• A)Whenever a country has a positive amount of federal debt, it must run a federal budget deficit in that year.
• B)As discussed in the textbook, the federal budget deficit represents a real variable, while the federal debt represents a nominal variable.
• C)As discussed in the textbook, the federal budget deficit represents a flow variable, while the federal debt represents a stock variable.
• D)All of the above are true.
• E)None of the above are true.

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Definitions:

Chief Executive Officer

The highest-ranking executive in a company, responsible for making major corporate decisions.

Capital Expenditures Budget

A budget detailing the planned investments in fixed assets, such as machinery, equipment, or buildings, intended to benefit the company over a long period.

Master Budget

A comprehensive financial plan made up of several smaller, specific budgets that detail a company's projections for future periods.

Long-Term Financial Plans

Strategies and financial goals set by a business or individual for a period extending beyond one year.