During a Recession,governments Tend to Run Budget Deficits

question 100

Multiple Choice

During a recession,governments tend to run budget deficits.What is the result of this on the real interest rate and investment spending?

• A)The real interest rate decreases and investment spending increases.
• B)The real interest rate increases and investment spending decreases.
• C)The real interest rate and investment spending both decrease.
• D)The real interest rate and investment spending both increase.

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Definitions:

Negative Message

Communication that delivers bad news or delivers information likely to disappoint or upset the recipient.

Obscure Bad News

Strategically minimizing the visibility or understanding of negative information or developments.

Sincere Apology

An authentic expression of regret for an action or mistake, highlighting genuine remorse and intention to rectify the situation.

Financial Loss

The reduction in monetary value that occurs as a result of an investment decision or business operation.