The Private Sector Will Have to Borrow at the Same

question 68

Multiple Choice

The private sector will have to borrow at the same interest rates that the government borrows at. As the government increases its borrowing, this leads to _____.

• A) offsetting changes
• B) the multiplier effect
• C) financial crowding out
• D) a government surplus

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Definitions:

Pre-exploration Costs

Expenses incurred before the actual exploration activity begins, such as for initial research or permitting.

IASB Extractive Activities

Refers to the guidance provided by the International Accounting Standards Board on the accounting for and reporting of extraction activities.

Measurement of Reserves

The process of estimating the quantities of economically recoverable resources available in a company’s reserves, important for industries like oil and gas.

Intangibles

Non-physical assets owned by a business, such as patents, trademarks, and goodwill, that have value but cannot be touched or seen.