If a Country Raises Its Budget Deficit,then Its

question 80

Multiple Choice

If a country raises its budget deficit,then its

• A)net capital outflow and net exports rise.
• B)net capital outflow rises and net exports fall.
• C)net capital outflow falls and net exports rise.
• D)net capital outflow and net exports fall.

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Definitions:

Cost of Goods Sold

The immediate expenses linked to manufacturing goods for sale within a business, encompassing both materials and workforce costs.

Credit Sales Transactions

Transactions where goods or services are sold to a customer with an agreement that payment will be made at a later date.

Perpetual Inventory System

An accounting method that records inventory purchases and sales in real-time, continuously updating inventory balances.

Purchase Returns

Goods returned to a supplier from a buyer due to issues like defects or dissatisfaction, often leading to a refund or credit.