If the United States Ran Large Budget Deficits That Push

question 50

Multiple Choice

If the United States ran large budget deficits that push the federal debt to dangerously high levels, which of the following would be most likely to occur?

• A) An increase in investor confidence,  an inflow of capital, and expansion in the size of the trade deficit.
• B) Loss of investor confidence, a decline in the net inflow of capital, and shrinkage in the trade deficit.
• C) An increase in the attractiveness of investments in the United States, an increase in the inflow of capital, and a smaller trade deficit.
• D) An increase in the long-term growth rate of the U.S. economy.

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Definitions:

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A banquet room is a large room in a hotel, restaurant, or other venue, designed to host large gatherings, parties, or events such as weddings or conferences.

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A form of academic instruction, either at an academic institution or offered by a commercial or professional organization, focusing on a specific topic or project.

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Property and resources owned by a partnership that are used in the conduct of its business.

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The practice or strategy of promoting, selling, or conducting sales primarily on weekends.