In Comparison to a Government That Runs a Balanced Budget

question 134

Multiple Choice

In comparison to a government that runs a balanced budget, when the government runs a budget deficit,

• A)the equilibrium interest rate will fall.
• B)business investment will fall.
• C)household savings will fall.
• D)the demand for loanable funds will shift to the right.
• E)none of the above

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Definitions:

Responsiveness

The ability of a system or organization to quickly and effectively react to changes.

Carrier

A company that provides transportation services for goods, typically via land, sea, or air.

Mode of Transportation

Refers to the various methods or forms used to move people or goods from one place to another, such as by road, rail, air, or sea.

Supply Chain

The entire network of entities, directly or indirectly interlinked and interdependent, involved in serving the same consumer or customer with products or services.