Which of the Following Is True

question 96

Multiple Choice

Which of the following is true?

• A)A budget deficit will reduce the national debt.
• B)A budget deficit will increase the national debt.
• C)A balanced budget will increase the national debt.
• D)A budget surplus will increase the national debt.

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Definitions:

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded.

Luxury Yachts

High-end, luxurious boats equipped with sophisticated amenities, designed for comfort and leisure.

Deadweight Loss

A loss of economic efficiency that occurs when the equilibrium for a good or a service is not achieved or is unachievable.

Elastic

Describes a situation in which the demand or supply for a good or service significantly changes in response to a change in price.