When a Government Has a Budget Surplus, the Surplus

question 83

Multiple Choice

When a government has a budget surplus, the surplus

• A)helps finance investment.
• B)crowds-out private saving.
• C)must be subtracted from private saving.
• D)increases the world real interest rate.
• E)decreases the demand for loanable funds.

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Definitions:

Unconditioned Response

A naturally occurring reaction to an unconditioned stimulus, such as salivating when smelling food.

Advertisers

Individuals or companies that promote products, services, or ideas through various forms of media, aiming to influence consumer behavior or perceptions.

Drug Habituation

The diminished response to a drug after repeated use, often leading to the need for increased doses to achieve the original effect.

Classical Conditioning

A procedure of learning through which the regular pairing of two stimuli results in a response that was at first initiated by the second stimulus but is ultimately initiated by the first stimulus alone.