The Relationship Between GDP and the Demand for Funds Is

question 70

Multiple Choice

The relationship between GDP and the demand for funds is

• A)negative.
• B)direct.
• C)indifferent.
• D)inverse.

---

Definitions:

Tax

A compulsory monetary fee or different form of levy placed on a taxpayer by a government body to finance government expenses and various public outlays.

Opportunity Cost

The cost of choosing one option over another, represented by the value of the foregone alternative.

Deadweight Loss

An economic inefficiency occurring when there is an imbalance between supply and demand leading to a loss of economic value, often caused by government interventions like taxes or subsidies.

Equilibrium Quantity

The amount of products or services available and sought after at the market's balance price.