Suppose Government Expenditures on Goods and Services and Net Taxes

question 169

Multiple Choice

Suppose government expenditures on goods and services and net taxes both decrease,and expenditures fall by more than net taxes.The effects of these changes on the budget deficit cause

• A)both the equilibrium interest rate and the equilibrium quantity of loanable funds to fall.
• B)both the equilibrium interest rate and the equilibrium quantity of loanable funds to rise.
• C)the equilibrium interest rate to rise and the equilibrium quantity of loanable funds to fall.
• D)the equilibrium interest rate to fall and the equilibrium quantity of loanable funds to rise.

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Definitions:

Pump Division

A specific sector or unit within a company that focuses on the production or sale of pumps.

Pool Products Division

A specialized business unit within a company that focuses on the development, manufacture, and distribution of products for pools, including chemicals, pumps, and accessories.

Service Departments

Units within an organization that support the production process but do not directly engage in manufacturing activities.

Operating Departments

Operating departments are units within an organization directly involved in its primary revenue-generating activities, such as production or sales departments.