Which of the Following Is True of an Increase in the Federal

question 114

Multiple Choice

Which of the following is true of an increase in the federal government budget surplus?

• A)An increase in surplus results in a decrease in the national saving.
• B)An increase in surplus shifts the aggregate demand curve rightward.
• C)An increase in surplus increases the federal debt.
• D)An increase in surplus dampens aggregate demand in the short run.
• E)An increase in surplus increases the natural rate of unemployment.

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Definitions:

Loan Origination Fees

Charges paid to a lender or broker for processing a new loan application, used as compensation for putting the loan in place.

Periodic Interest Revenue

The interest income earned on investments during a specific period, reflecting the return on interest-bearing financial assets.

Note Proceeds

The amount of money received by a borrower from the lender when a note is issued; essentially the principal amount of the loan.

Debt Restructuring

A financial process where the terms of existing debts, such as the interest rate or payment schedule, are altered to provide relief to the borrower.