If the Budget Deficit Becomes Smaller, Then It Will Cause

question 32

True/False

If the budget deficit becomes smaller, then it will cause the public debt to also become smaller.

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Definitions:

Net Present Value

The difference between the current value of cash inflows and the current value of cash outflows over a period of time.

Investment

An asset or item acquired with the goal of generating income or appreciation.

Net Present Value

The difference between the present value of cash inflows and outflows over a period of time, used in capital budgeting to assess the profitability of investments.

Investment

The allocation of resources, such as capital or time, with the expectation of achieving a future return or profit.