Which of the Following Would Not Be a Consequence of an Increase

question 371

Multiple Choice

Which of the following would not be a consequence of an increase in the U.S. government budget deficit?

• A)The U.S. trade balance rises.
• B)The U.S. interest rate rises.
• C)Domestic investment in the U.S. falls.
• D)The real exchange rate of the U.S. dollar appreciates.

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Definitions:

Individual Performance

The measurement of work output or results achieved by a single person, often evaluated against predetermined standards or objectives.

Free Rider Effect

Occurs when individuals benefit from resources, goods, or services without contributing to the cost or effort.

Sucker Effect

A phenomenon where individuals decrease their effort upon perceiving that their contributions are unfairly benefiting others who are not working as hard.

Free Ride

A phenomenon where an individual or individuals benefit from resources or services without contributing to the cost or effort.