In Comparison to a Government That Runs a Balanced Budget,when

question 182

Multiple Choice

In comparison to a government that runs a balanced budget,when the government runs a budget deficit

• A)the equilibrium interest rate will fall.
• B)business investment will fall.
• C)household savings will fall.
• D)none of the above

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Definitions:

Korea

A region in East Asia, divided into two distinct countries: North Korea and South Korea, with distinct governments and political systems.

Great Britain

An island in the North Atlantic Ocean off the northwest coast of continental Europe, comprising England, Scotland, and Wales.

Japan

An island country in East Asia, known for its rich history, cultural heritage, and significant economic and technological advancements.

Colony

A territory under the immediate political control of a state, distinct from the sovereign territory of that state.