Contractionary fiScal Policy Would Tend to Make a Budget Deficit

question 137

Multiple Choice

Contractionary fiscal policy would tend to make a budget deficit become

• A) bigger.
• B) smaller.
• C) a trade deficit.
• D) a trade surplus.

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Definitions:

TSX

The Toronto Stock Exchange, a major stock exchange in Canada where shares of public companies are traded.

Outstanding Shares

The total number of shares of a corporation that are currently owned by investors, including restricted shares owned by the company's officers and insiders.

Fair Value

An estimate of the market price of an asset or liability, based on the current market conditions and the asset's characteristics.

Goodwill

The intangible asset that arises when a company acquires another for a price higher than the fair value of its net identifiable assets.