If Quantity Demanded Is Greater Than Quantity Supplied

question 36

Multiple Choice

If quantity demanded is greater than quantity supplied

• A)the price will fall.
• B)the price will rise.
• C)the market is cleared.
• D)the price is at equilibrium.

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Definitions:

Government Budget Deficit

occurs when a government's expenditures exceed its revenues, leading to borrowing or debt accumulation.

U.S. Treasury

The government department responsible for managing federal finances, including issuing currency and managing public debt.

Securities

Financial instruments representing ownership (stocks), a debt agreement (bonds), or rights to ownership (derivatives).

Twin Deficits

The situation where a country has both a fiscal deficit (government spending exceeds revenue) and a current account deficit (imports exceed exports).