An Increase in the Federal Budget Deficit _____

question 118

Multiple Choice

An increase in the federal budget deficit _____

• A) only occurs when there is a deficit in the balance of trade.
• B) creates deflation.
• C) decreases aggregate demand.
• D) decreases the aggregate quantity demanded along a stationary aggregate demand curve.
• E) increases aggregate demand.

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Definitions:

Role Model

An individual admired for their qualities or achievements and considered as an example to emulate.

Communication

The process of transmitting information, ideas, emotions, skills, and knowledge between two or more individuals through verbal, written, nonverbal, and digital means.

Unavailable

Not able to be used, accessed, or participated in due to various reasons.

Inflexibility

The lack of willingness or ability to change or adapt as circumstances require.