A Government Budget Deficit

question 105

Multiple Choice

A government budget deficit

• A)increases both net capital outflow and net exports.
• B)decreases both net capital outflow and net exports.
• C)increases net capital outflow and decreases net exports.
• D)decreases net capital outflow and increases net exports.

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Definitions:

Fair Value

The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Classified Balance Sheet

A balance sheet that contains standard classifications or sections.

Personal Cash

Refers to the liquid assets that an individual holds for the purpose of immediate or near-term spending or investment.

Accounts Receivable

Receivables from customers against goods or services supplied by a business, pending payment.