A Reduction in a Country's Government Budget Deficit

question 295

Multiple Choice

A reduction in a country's government budget deficit

• A)shifts both the supply of loanable funds in the market for loanable funds and the supply of dollars in the market for foreign-currency exchange right.
• B)shifts both the supply of loanable funds in the market for loanable funds and the supply of dollars in the market for foreign-currency exchange left.
• C)shifts both the demand for loanable funds in the market for loanable funds and the demand for dollars in the market for foreign-currency exchange right.
• D)shifts both the demand for loanable funds in the market for loanable funds and the demand for dollars in the market for foreign-currency exchange left.

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Definitions:

Cash Distribution

The payment of earnings, or other financial assets, to shareholders or partners in a company or fund.

Income-Sharing Ratio

The predetermined agreement on how profits or losses will be distributed among partners or stakeholders in a business arrangement.

Capital Deficiency

A financial state where a company's liabilities exceed its assets, indicating financial distress.

Distribution of Cash

The allocation or disbursement of cash funds by a business to its stakeholders or for operational purposes.