If the Federal Government Needs to Borrow Additional Funds, This

question 65

Multiple Choice

If the federal government needs to borrow additional funds, this borrowing reflects a(n) ____ in the supply of loanable funds and a(n) ____ in the demand for loanable funds. ​

• A)increase; no change
• B)decrease; no change
• C)no change; increase
• D)no change; decrease

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Definitions:

GAAP Accounting

A set of accounting standards and principles designed to ensure consistency, fairness, and accuracy in financial reporting.

Derivatives

Financial instruments whose value is derived from the value of an underlying asset, index, or security.

Earnings Volatility

The degree to which a company's earnings fluctuate over time, indicating the variability or risk in its operational performance.

Futures Contract

A legal agreement to buy or sell a particular commodity or financial instrument at a predetermined price at a specified time in the future.