Other Things the Same,the Effects of an Increase in Transfer

question 199

Multiple Choice

Other things the same,the effects of an increase in transfer payments on the government's budget deficit will lead to

• A)greater investment.
• B)a higher interest rate.
• C)higher public saving.
• D)All of the above are correct.

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Definitions:

Relevant Range

The range of activity within which the assumptions about fixed and variable costs are valid. Beyond this range, cost behaviors may change.

Per Unit Basis

A method of cost allocation or measurement that divides a total by the number of units to find the cost per unit.

Fixed Production Costs

Manufacturing costs that remain constant regardless of the level of production, such as rent and salaries of permanent staff.

Per Unit

A term that describes costs or revenues on a single unit basis.