For a Given Level of Private Saving,a Decrease in the Government's

question 83

Multiple Choice

For a given level of private saving,a decrease in the government's budget deficit ________ the long-run rate of economic growth.

• A)will reduce
• B)will leave unchanged
• C)will increase
• D)will diminish
• E)none of the above

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Definitions:

Restrictive Covenants

Clauses in contracts that impose limitations or conditions on the actions of parties, commonly found in lending agreements to protect the lender.

Indenture

A formal legal agreement, contract, or document, especially one relating to a loan or bond issue.

Debenture

An unsecured bond.

Sinking Fund

A savings fund accumulated over time for the purpose of paying off debt or replacing a large expense in the future.