If the United States Ran Large Budget Deficits That Push

question 50

Multiple Choice

If the United States ran large budget deficits that push the federal debt to dangerously high levels, which of the following would be most likely to occur?

• A) An increase in investor confidence,  an inflow of capital, and expansion in the size of the trade deficit.
• B) Loss of investor confidence, a decline in the net inflow of capital, and shrinkage in the trade deficit.
• C) An increase in the attractiveness of investments in the United States, an increase in the inflow of capital, and a smaller trade deficit.
• D) An increase in the long-term growth rate of the U.S. economy.

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Definitions:

Kilogram

The base unit of mass in the International System of Units (SI), equivalent to the mass of the International Prototype of the Kilogram.

Kilometer

A unit of measurement equal to 1,000 meters, commonly used to measure distances.

Scientific Measurement

The process of obtaining a quantitative description of the properties of an object or event using instruments that adhere to a standard unit.

Estimate

A calculation or judgment made about a quantity or value when exact figures are not available or necessary.