Which of the Following Is True of an Increase in the Federal

question 29

Multiple Choice

Which of the following is true of an increase in the federal government budget surplus?

• A) An increase in surplus results in a decrease in national saving.
• B) An increase in surplus shifts the aggregate demand curve rightward.
• C) An increase in surplus increases the federal debt.
• D) An increase in surplus dampens aggregate demand in the short run.
• E) An increase in surplus increases the natural rate of unemployment.

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Definitions:

Goodwill

An intangible asset that arises when a business is acquired for more than the fair value of the identifiable net assets of the acquired business.

Appendix B

Generally, this term would refer to additional supporting information found at the end of a document, book, or publication, but without a specific context, it is too broad for a unique definition.

Disclosure

The action of making new or secret information known.

AASB 3

An accounting standard detailing the requirements for the accounting of business combinations.