Which Scenario Is NOT Associated with Government Budget Deficits

question 9

Multiple Choice

Which scenario is NOT associated with government budget deficits?

• A) The government becomes a borrower in the market for loanable funds.
• B) The interest rate rises.
• C) The total amount of borrowing decreases.
• D) Private investment spending is crowded out.

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Definitions:

Mark-up

An enhancement to the price at which goods are bought to include expenses and profit.

Selling Price

The amount of money a buyer pays to purchase a product or service from a seller.

Mark-up

The uplift on the initial cost of items to cover business overheads and secure earnings.

Construction Purchased Saws

The acquisition of saws for the purpose of using them in construction projects, considered a capital expense.