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If Actions by the President and Congress Reduce the Federal

question 104

Multiple Choice

If actions by the President and Congress reduce the federal government budget deficit,then interest rates will _____,the U.S.dollar will _____,and the foreign trade deficit will _____.


Definitions:

Variance

In statistics, variance is a measure of how far a set of numbers is spread out from their average value. It's key in assessing variability and risk.

Risk Premium

The additional return expected by an investor for taking on a higher level of risk.

Risky Asset

An asset that has a significant degree of uncertainty in its returns, often leading to variability in its investment outcomes.

Normal Distribution

A statistical function that represents the distribution of many types of data; it’s symmetric and describes data that clusters around a mean or average.

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