When the Government Is Running a Budget Surplus

question 113

Multiple Choice

When the government is running a budget surplus,

• A) the demand for loanable funds includes only business investment spending
• B) the supply of loanable funds includes only business investment spending
• C) the loanable funds market cannot be in equilibrium
• D) the supply of loanable funds includes only household saving
• E) there will be an excess supply of loanable funds

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Definitions:

Allocortex

A type of cortical tissue in the brain with fewer layers than the neocortex, involved in functions such as olfaction and emotion.

Perceptual World

The perceptual world refers to an individual's subjective interpretation and understanding of the external environment through sensory input.

Motivational States

Psychological conditions that drive individuals to act towards a goal or fulfil a need.

Hypothalamus

A region of the brain below the thalamus that coordinates both the autonomic nervous system and the activity of the pituitary, controlling body temperature, thirst, hunger, and other homeostatic systems.