What Would an Increase in the Budget Deficit Most Likely

question 23

Multiple Choice

What would an increase in the budget deficit most likely do to investment spending?

• A)It would make investment spending fall.
• B)It would make investment spending rise.
• C)It would not affect investment spending.
• D)It may increase, decrease, or not affect investment spending.

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Definitions:

Payments To Creditors

Money paid out by a business to settle debts owed to suppliers or lenders for goods, services, or loans.

Purchases On Account

Transactions where goods are acquired on credit, with payment to be made at a later date.

Subsidiary Ledger

A detailed ledger that contains account information to support the main general ledger accounts.

Adjustment For Supplies

An accounting entry made to account for the change in the supplies' value over a certain period, ensuring the correct expense is recognized.