Suppose That the Budget Deficit of a Country Remains Level

question 296

Multiple Choice

Suppose that the budget deficit of a country remains level for 5 years.The federal debt will:

• A) remain constant.
• B) fall.
• C) rise.
• D) either remain constant or fall.

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Definitions:

Retained Earnings

Profits that a company keeps or reinvests rather than distributing to shareholders as dividends.

Cash Available

The total amount of cash or liquid funds a company or individual has accessible for immediate use.

Stock Dividend

A distribution by a company to its shareholders through the issuance of extra shares instead of monetary compensation.

Sufficient Cash

Adequate monetary resources available to a business for meeting immediate and short-term obligations.