A Budget Deficit Will Be Least Inflationary If the Aggregate

question 98

Multiple Choice

A budget deficit will be least inflationary if the aggregate

• A)demand curve is very steep.
• B)demand curve is very flat.
• C)supply curve is very flat.
• D)supply curve is very steep.

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Definitions:

Normal Balance

The side (debit or credit) where increases are recorded for a particular type of account, reflecting the account's normal balance position in the accounting equation.

Financial Statement

Papers that present a summary of a company's financial status, covering the balance sheet, income statement, and statement of cash flows.

Normal Balance

The side (debit or credit) of an account that is expected to have a higher balance, which is used to increase the account.

Normal Balance

The side (debit or credit) of an account that is expected to have a higher balance, based on the accounting equation.