Which of the Following Statements Is True of the Global

question 69

Multiple Choice

Which of the following statements is true of the global debt crisis?

• A)Fiscal imbalances are the least important source of risk and uncertainty in the global business environment.
• B)The smallest proportion of government debt results from national pension and healthcare programs.
• C)Debt has substantially decreased in major advanced economies mainly due to excessive government spending.
• D)When a government tries to pay down its debt, money is drawn out of the national money supply, which hinders economic activity and reduces tax revenues.

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Definitions:

Short Run

A period in which at least one input is fixed, and only some of the production inputs can be varied.

Aggregate Demand

Cumulative interest in goods and services within an economic structure, evaluated at a particular comprehensive price level over a specific duration.

Short Run

A timeframe in which a company has at least one input that remains constant and is unable to be altered.

Short-Run Equilibrium

A state in economics where demand equals supply, resulting in market stability over a temporary period.