Use the Following to Answer Questions

question 172

Multiple Choice

Use the following to answer questions:
-(Figure: Crowding Out) Use Figure: Crowding Out.The domestic demand for loanable funds curve D_LF1 will shift to D_LF2 when there is a(n) :

• A) decrease in the government budget deficit.
• B) increase in the government budget deficit.
• C) increase in private savings.
• D) decrease in private savings.

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Definitions:

Personnel Expenses

Costs associated with the compensation and benefits of a company's employees, including wages, salaries, bonuses, and benefits.

Planning Budget

A budget created for a specific level of activity that is used for planning and coordinating operations.

Budgeting

The process of creating a plan to spend your money, outlining anticipated income and expenses over a certain period.

Activity Variance

The difference between predicted and actual costs of business activities, used to assess performance and control costs.