If a Government Increases Its Budget Deficit,which of the Following

question 174

Multiple Choice

If a government increases its budget deficit,which of the following best describes the consequences?

• A)Interest rates and domestic investment rise.
• B)Interest rates and domestic investment fall.
• C)Interest rates rise, and domestic investment falls.
• D)Interest rates fall, and domestic investment rises.

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Definitions:

Appraised Fair Value

The estimated market value of an asset based on the judgment of a qualified appraiser at a specific time.

Cost

The value of economic resources used or the amount of expenditure incurred to acquire or produce a good or service.

Book Value

The net value of an asset as recorded on the balance sheet, calculated by subtracting any associated depreciation or amortization from its cost.

Property

Assets or possessions owned by an individual or company, encompassing both tangible and intangible assets.