In the Long Run a Budget Deficit Is Likely to Cause

question 47

Multiple Choice

In the long run a budget deficit is likely to cause a decrease in GDP because:

• A) private and government savings will increase.
• B) domestic investment will decline, lowering future capital stock and hence future GDP.
• C) there will be an increase in international confidence and investment.
• D) inflation will decline while prices go up.

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Definitions:

Group Cohesion

The level of commitment, trust, and support among members within a team or group.

Major Dimensions

Refers to primary or principal measures or aspects that define or form the structure of a concept, object, or system.

Hofstede

A reference to Geert Hofstede, a Dutch social psychologist known for his work on cultural dimensions theory, which analyzes cross-cultural communication and differences.

Cultural Behaviors

Patterns of actions and social practices that are characteristic of a particular community or society.