Choose the Word or Phrase in [ ] Which Will

question 112

Short Answer

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-[Borrowing money | Cutting low-priority expenses] is the preferable way to deal with a budget deficit.

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Definitions:

Net Capital Outflow

The difference between the purchase of foreign assets by domestic residents and the purchase of domestic assets by foreigners in an economy.

Government Budget Deficit

The financial situation where the government's expenditures exceed its revenues over a specified period, typically a fiscal year.

Real Exchange Rate

A measure of the value of one currency in terms of another, adjusted for inflation.

Net Capital Outflow

The difference between a nation's total investment in foreign countries and foreign investments within the nation, over a specific period of time.