Government Financing of Large Budgetary Deficits

question 98

Multiple Choice

Government financing of large budgetary deficits

• A) absorbs savings and decreases interest rates.
• B) may crowd out private borrowers.
• C) is known as monetizing the deficit.
• D) reduces total consumer spending and demand.

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Definitions:

Actuarial Loss

occurs when the actual experience under a pension plan deviates from expected assumptions, resulting in higher costs than projected.

Pension Expense

The cost recognized by an employer for maintaining a defined benefit pension plan for its employees over a specific period.

Plan Assets

Assets that are held within a pension or retirement plan for the purpose of funding participant benefits.

Actuarial Loss

A loss recognized when the actual experience under a pension plan deviates from expected assumptions, resulting in increased liabilities or decreased assets.