In the Short Run, a Federal Budget Deficit Will Most

question 102

Multiple Choice

In the short run, a federal budget deficit will most likely _____

• A) stimulate aggregate demand.
• B) reduce federal debt.
• C) boost economic growth.
• D) reduce national saving.
• E) boost domestic saving.

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Definitions:

Medium Fries

Generally refers to a portion size of fried potatoes offered in fast food or restaurant settings, situated between small and large size options.

Marginal Benefit

The additional satisfaction or utility that a person receives from consuming an additional unit of a good or service.

Additional Serving

An extra portion or second helping of food provided after the consumption of an initial serving.

Economic Thinking

A method of evaluating issues and making decisions based on the principles of economics, such as cost-benefit analysis, scarcity, and opportunity cost.