If the Federal Government Is Running a Budget Deficit

question 49

Multiple Choice

If the federal government is running a budget deficit,

• A) the national debt will decline.
• B) it will have to either raise taxes or reduce expenditures next year.
• C) the U.S. Treasury will finance the deficit by issuing additional bonds.
• D) the supply of money will increase and the general level of prices will rise.

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Definitions:

Stock X

An online marketplace and clothing reseller, primarily of sneakers and streetwear.

Stock Y

A placeholder name for a specific stock not defined here; could be used to discuss hypothetical scenarios in finance.

Economy Booms

A period of significant economic growth, expansion, and high activity within a country's economy.

Standard Deviation

Standard deviation is a statistical measure that quantifies the amount of variation or dispersion of a set of data values, commonly used in finance to measure the volatility or risk of an investment.