If the Budget Deficit Increases Then

question 134

Multiple Choice

If the budget deficit increases then

• A)saving and the interest rate rise.
• B)saving rises and the interest rate falls.
• C)saving falls and the interest rate rises.
• D)saving and the interest rate fall.

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Definitions:

Straight-Line Method

This is a depreciation method where an equal amount of the asset's cost is allocated as an expense each year over its useful life.

Salvage Value

The expected residual cost of an asset by the end of its functional life.

Commercial Substance

A criterion indicating that a transaction significantly changes the economic position or cash flows of a company.

Trade-In Allowance

The amount credited to the buyer of a new item for the value of the item being replaced or traded in.