Which of the Following Would NOT Be a Consequence of an Increase

question 157

Multiple Choice

Which of the following would NOT be a consequence of an increase in the Canadian government's budget deficit?

• A) Canadian interest rates rise.
• B) Canadian net capital outflow falls.
• C) The real exchange rate of the Canadian dollar depreciates.
• D) The Canadian supply of loanable funds shifts left.

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Definitions:

Income-Sharing Ratio

The proportion at which partners in a partnership agreement divide profits and losses among themselves.

Winding Up

The process of dissolving a company, involving liquidating assets to pay off creditors and distributing any remaining assets to shareholders.

Capital Account Balance

The net result of public and private international investments flowing in and out of a country, reflecting changes in ownership of national assets.

Net Income

The amount of profit a company generates after all expenses, taxes, and costs have been subtracted from total revenue.