Suppose a Country Has Been Running a Persistent Government Budget

question 18

Multiple Choice

Suppose a country has been running a persistent government budget deficit. If the deficit is reduced, but remains positive,

• A)the country will experience a budget surplus.
• B)interest payments on the debt will immediately decrease.
• C)government debt will increase.
• D)government debt will decrease.

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Definitions:

Quartzite

A hard, non-foliated metamorphic rock which was originally pure quartz sandstone and transformed through heat and pressure.

Fractures

Breaks in rock or mineral formations where there has been no significant movement on either side.

Unmetamorphosed Sedimentary

Refers to sedimentary rocks that have not undergone metamorphism and retain their original sedimentary characteristics.

Fault Scarps

Steep cliffs or slopes formed by the displacement of the ground surface due to movement along a fault.