Which of the Following Is a Part of the Argument

question 118

Multiple Choice

Which of the following is a part of the argument against deficits?

• A) They increase interest rates and investment.
• B) They increase interest rates and decrease investment.
• C) They decrease interest rates and investment.
• D) They decrease interest rates and increase investment.

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Definitions:

Loss-Minimizing Level

The production level at which a firm minimizes its losses in the short run when it cannot cover total costs, but can cover variable costs.

Fixed Cost

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.

Variable Cost

Costs that change in proportion to the good or service that a business produces.

Profit

The financial gain obtained when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.