Exhibit 4-2

question 56

Multiple Choice

Exhibit 4-2
-Refer to Exhibit 4-2. A shift from demand curve D to D' illustrates a(n)

• A)decrease in demand
• B)decrease in quantity demanded
• C)increase in quantity demanded
• D)increase in demand
• E)increase in supply

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Definitions:

Government Revenues

The income received by the government from taxes and non-tax sources used to fund public services and expenditures.

Interest Rates

The rate at which a borrower is charged interest for borrowing money from a lender.

Federal Budget Deficits

The financial situation where the U.S. government's expenditures exceed its revenue in a given fiscal year.

Trade Deficits

Trade deficits occur when a country imports more goods and services than it exports, resulting in a net outflow of domestic currency to foreign markets.