All Other Things Equal,an Increase in Government Spending That Is

question 35

Multiple Choice

All other things equal,an increase in government spending that is NOT funded by taxes will

• A)have an undetermined effect on the current account.
• B)have no effect on the current account.
• C)increase the current account deficit.
• D)decrease the current account deficit.

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Definitions:

Assume

To accept something to be true without verification or proof, often used in the context of mathematical proofs and hypotheses.

Right Triangle

A triangle that has one angle measuring 90 degrees.

Vertices

The corners or intersection points of geometric shapes where two or more lines, edges, or curves meet.

Line Segments

Portions of a line defined by two endpoints, representing the shortest path between those two points.