Which of the Following Is True About an Increase in the U.S

question 13

Multiple Choice

Which of the following is true about an increase in the U.S. government's budget deficit?

• A)It will lead to global crowding out if U.S. interest rates fall below the level of interest rates in other countries.
• B)It will cause outflows of foreign funds from the United States as foreign investors move their funds to other countries.
• C)It will cause an inward shift in the aggregate demand for loanable funds curve.
• D)None of these are correct.

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Definitions:

Rapidly Changing Technology

Refers to the swift evolution and innovation in technology that impacts industries, markets, and society at large.

Natural Monopoly

A market in which a single firm can provide a good or service at a lower cost than any potential competitor, due to economies of scale.

Lower Cost

A situation where the expenses involved in producing a good or service are reduced, leading to potential savings.

Social Regulation

Rules imposed by government aimed at improving societal welfare, focusing on areas such as health, safety, and the environment, rather than on economic matters.