An Increase in the Budget Deficit Causes Net Capital Outflow

question 56

Multiple Choice

An increase in the budget deficit causes net capital outflow to

• A)rise,because the supply of loanable funds shifts right.
• B)rise,because the demand for loanable funds shifts right.
• C)fall,because the supply of loanable funds shifts left.
• D)fall,because the demand for loanable funds shifts right.

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Definitions:

Relaxation

A state of being free from tension and anxiety.

Rewarding

Rewarding is providing a positive response to a behavior, action, or effort, encouraging its recurrence and reinforcing the behavior.

Cope

The ability to effectively deal with and manage one's feelings and reactions to problems or challenges.

Fear

An emotional response to perceived threats or danger, leading to physiological changes and behaviors aimed at avoiding or confronting the threat.