If the United States Ran Large Budget Deficits That Push

question 50

Multiple Choice

If the United States ran large budget deficits that push the federal debt to dangerously high levels, which of the following would be most likely to occur?

• A) An increase in investor confidence,  an inflow of capital, and expansion in the size of the trade deficit.
• B) Loss of investor confidence, a decline in the net inflow of capital, and shrinkage in the trade deficit.
• C) An increase in the attractiveness of investments in the United States, an increase in the inflow of capital, and a smaller trade deficit.
• D) An increase in the long-term growth rate of the U.S. economy.

Apply the concept of present value to quantify the worth of future payments or receipts in today's dollars.

Understand the relationship between interest rates, time periods, and the future value of investments.

Develop decision-making skills regarding financial investments based on interest rate projections and time periods.

Understand the relationship between nominal wages, real wages, and the consumer price index.

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Definitions:

External Environment

Events and conditions surrounding an organization that influence its activities.

Open Innovation

An approach where companies are encouraged to adopt both internal and external ideas, along with using both internal and external routes to reach the market, in order to further their technological progress.

Broadcasting

The dissemination of audio or video content to a dispersed audience via any electronic mass communications medium, but typically one employing the electromagnetic spectrum (radio waves), in a one-to-many model.

Process Innovation

The act of implementing new or significantly improved production or delivery methods.