Which of the Following Is True About How Trade Deficits

question 134

Multiple Choice

Which of the following is true about how trade deficits and government budget deficits are related?

• A) The trade deficit leads to a reduction in investment that leads to a government budget deficit.
• B) The trade deficit leads to a decline in imports relative to exports that leads to a government budget deficit.
• C) The government budget deficit leads to higher interest rates that will lead to a trade deficit.
• D) The government budget deficit leads to lower interest rates that will lead to a lower trade deficit.

Recognize the importance of linking business strategy, performance management, and compensation.

Identify various types of performance appraisal systems and their effectiveness.

Understand the importance of objective and subjective measures in performance evaluation.

Identify biases in performance evaluation and strategies to mitigate them.

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Definitions:

Central Planning

An economic system in which decisions about production, investment, and distribution are made by a central authority, typically in a government.

Income

The amount of money received over a period of time, usually from work, investments, or business activities.

Guiding Function

A principle or mechanism that directs actions or decisions towards a desired outcome or objective.

Market Conditions

Various factors and influences that affect the supply and demand of products and services within a market, including competition, consumer preference, and economic environment.