When the Government Runs a Budget Deficit, What Is Most

question 83

Multiple Choice

When the government runs a budget deficit, what is most likely to happen?

• A) Interest rates become lower than they would be otherwise.
• B) National saving gets higher than it would be otherwise.
• C) Investment gets lower than it would be otherwise.
• D) Government debt decreases by the amount of the deficit.

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Definitions:

Shipment Contract

An agreement between a seller and buyer where the seller is obligated to ship the goods and the buyer is obligated to accept and pay for them, under specified terms.

Title Passes

The transfer of ownership of property from one party to another, typically upon satisfaction of specified conditions.

Buyer

An individual or entity that purchases goods or services from another in a commercial transaction.

Allocation Of Risk

The process of defining and assigning the financial or operational responsibilities associated with potential risks in contractual agreements.