An Increase in the Budget Deficit

question 118

Multiple Choice

An increase in the budget deficit

• A)raises net exports and domestic investment.
• B)raises net exports and reduces domestic investment.
• C)reduces net exports and raises domestic investment.
• D)reduces net exports and domestic investment.

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Definitions:

Statute of Frauds

A legal principle requiring certain contracts to be in writing and signed in order to be enforceable.

Enforceable

Capable of being implemented or compelled to act in accordance with laws, rules, or agreements.

Lease

A contractual agreement by which one party conveys property, services, or land to another for a specified time, usually in return for a periodic payment.

Domestic Relationships

Interpersonal relationships that are characterized by a significant degree of personal intimacy or commitment, including family relationships and cohabitation.