Regarding Structural Deficits, Which of the Following Assertions Is True

question 200

Multiple Choice

Regarding structural deficits, which of the following assertions is true?

• A)The structural deficit depends on the state of the economy.
• B)The structural deficit is based on actual expenditures and receipts.
• C)The structural deficit changes only when policy changes.
• D)The structural deficit changes when GDP changes.

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Definitions:

Sales Increase

A rise in the volume or value of product units or services sold by a company, indicating growth in business activity.

Retention Ratio

The proportion of net income that is retained in the business rather than distributed to shareholders as dividends.

Dividend Payout Ratio

A financial indicator showing the proportion of a company's profits distributed to its shareholders as dividends.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from revenues. It's often referred to as the bottom line.