If Canada Goes from a Large Budget Deficit to a Small

question 159

Multiple Choice

If Canada goes from a large budget deficit to a small budget deficit,it will

• A)increase private saving and so shift the supply of loanable funds right.
• B)increase investment and so shift the demand for loanable funds right.
• C)increase public saving and so shift the supply of loanable funds right.
• D)reduce national saving and shift the supply left.

Analyze the impact of inventory errors on financial statements.

Apply the straight-line method of depreciation and correct errors associated with asset depreciation.

Identify the effects of changes in accounting principles and estimate changes on financial statements.

Compute corrected net income after adjusting for accounting errors.

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Definitions:

Present Value

The current value of a future sum of money or stream of cash flows, discounted at a specific interest rate.

Bond

A bond is a fixed income instrument that represents a loan made by an investor to a borrower, typically corporate or governmental.

Rule Of 70

The Rule of 70 is a calculation method used to estimate the number of years required for an investment or the economy's GDP to double, based on a constant annual growth rate.

Interest

The cost of borrowing money, typically expressed as a percentage of the amount borrowed, paid to the lender over a set period.