Which of the Following Statements Is Correct When the Australian

question 33

Multiple Choice

Which of the following statements is correct when the Australian government runs a budget deficit?

• A)The supply of loanable funds increases
• B)The interest rate falls
• C)The dollar appreciates
• D)It causes a trade balance surplus

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Definitions:

Relatively Inelastic

A situation where the demand for a product does not change significantly with a change in the price.

GSU

An acronym that can refer to Georgia State University or other entities, depending on the context.

Total Revenue

The total amount of money generated from sales of goods or services before any expenses are subtracted.

Elastic

Describes a situation in which the quantity demanded or supplied of a good or service significantly changes in response to a change in price.