Which of the Following Can Occur Simultaneously

question 63

Multiple Choice

Which of the following can occur simultaneously?

• A) An increase in the national debt and a budget surplus
• B) A decrease in the national debt and a balanced budget
• C) An unchanged national debt and a budget deficit
• D) Positive national debt and a budget surplus
• E) A decreasing national debt and a budget deficit.

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Definitions:

Interest Rate

The sum a lender charges a borrower to use assets, conveyed as a percentage of the principal's amount.

Present Value

The here and now valuation of a prospective future financial amount or series of cash flows, calculated with a certain return rate.

Future Value

The value of an investment at a specified date in the future, taking into account factors like interest rates and compound interest.

Interest-on-Interest

Earnings on the reinvestment of previous interest payments on fixed income investments or savings.