How Does a Decrease in the Federal Budget Deficit Affect

question 67

Multiple Choice

How does a decrease in the federal budget deficit affect the demand for dollars and the supply of dollars on the foreign exchange market?

• A)The demand for dollars falls,and the supply of dollars falls.
• B)The demand for dollars rises,and the supply of dollars rises.
• C)The demand for dollars rises,and the supply of dollars falls.
• D)The demand for dollars falls,and the supply of dollars rises.

---

Definitions:

Percentage Change

Percentage change measures the degree of change over time, calculated as the difference between two values divided by the original value, multiplied by 100.

Financial Statements

Written records that convey the business activities and the financial performance of a company, including the balance sheet, income statement, and cash flow statement.

Year Period

Year period refers to a span of 12 months used for financial, reporting, or operational purposes, typically starting on January 1st and ending on December 31st.

Vertical Analysis

A method of financial statement analysis in which each entry for each of the three major categories of accounts (or financial statements) is represented as a proportion of the total account.