An Increase in the Budget Surplus

question 86

Multiple Choice

An increase in the budget surplus

• A)raises net exports and domestic investment.
• B)raises net exports and reduces domestic investment.
• C)reduces net exports and raises domestic investment.
• D)reduces net exports and domestic investment.

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Definitions:

ARM

In computing, a family of reduced instruction set computing (RISC) architectures for computer processors. In finance, an adjustable-rate mortgage.

Average Payoff

The expected return or payoff from an investment or decision, calculated as the mean of all possible payoffs.

ARM

Refers to a type of microprocessor architecture that is widely used in electronic devices and computing systems for its efficiency and power consumption advantages.

IRR Function

The Internal Rate of Return function in Excel, used to calculate an investment's profitability by finding the discount rate that makes the net present value of cash flows zero.