Budget Deficits Tend to

question 3

Multiple Choice

Budget deficits tend to

• A) increase during expansions.
• B) increase during wars.
• C) decrease during recessions.
• D) increase over time.
• E) decrease over time.

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Definitions:

Portfolio

A collection of various investments held by an individual, company, or financial institution.

Risky Bond Portfolio

A collection of bonds with higher default risk, which may offer higher yields in compensation for the increased risk of loss.

Standard Deviation

A statistical measure of the dispersion or variability of a set of values, representing how spread out the numbers are from the mean.

Correlation

A statistical measure that describes the extent to which two variables move in relation to each other, indicating the strength and direction of their relationship.