A Decrease in the Government Budget Deficit Decreases the ________

question 19

Multiple Choice

A decrease in the government budget deficit decreases the ________ loanable funds and an increase in the government budget surplus increases the ________ loanable funds.

• A)demand for; demand for
• B)demand for; supply of
• C)supply of; demand for
• D)supply of; supply of
• E)demand for loanable funds and the supply of; supply of loanable funds and the demand for

---

Definitions:

Current Liabilities

Obligations or debts that a company must pay within a year or within its operating cycle.

Merchandise Inventory

Products that a company holds in stock with the intent to sell as part of its business operations.

Cost of Goods Sold

Costs incurred directly from the production of goods a company markets, including both materials and workforce expenses.

Days' Sales

A financial ratio that measures the average number of days a company takes to convert its inventory into sales.