Suppose a Country Had a Smaller Increase in Debt in 2006

question 26

Multiple Choice

Suppose a country had a smaller increase in debt in 2006 than it had in 2005.Then other things the same,we'd expect

• A)lower interest rates and investment in 2006 than in 2005.
• B)lower interest rates and greater investment in 2006 than in 2005.
• C)higher interest rates and greater investment in 2006 than in 2005.
• D)higher interest rates and lower investment in 2006 than in 2005.

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Definitions:

Head of Household

A tax filing status for individuals who are unmarried and provide more than half of the financial support for their household.

Taxpayer

An individual or entity that is obligated to make payments to municipal, state, or national authorities, usually in the form of taxes.

Qualifying Relative

A dependent who does not meet the criteria to be a qualifying child but qualifies based on relationship, income, and support tests for tax purposes.

Earn

To receive money or another form of compensation in exchange for labor or services provided.