With Respect to Deficits,__________

question 33

Multiple Choice

With respect to deficits,__________.

• A)a state cannot have a budget deficit and a trade deficit at the same time
• B)if a state has a trade deficit,it must have a budget deficit
• C)the concepts of budget deficit and trade deficit are used interchangeably
• D)a state can have a trade deficit without having a budget deficit

---

Definitions:

Future Value Table

A mathematical table used to calculate the future value of an investment or loan based on a specific interest rate and time period.

Present Value Table

A table used to calculate the present value of a future amount of money or stream of cash flows given a specific discount rate.

Present Value of $1

The current worth of a single dollar to be received in the future, discounted at a specific interest rate.

Borrowed Asset

An asset that is temporarily acquired from another party under a loan agreement, to be returned after a specified period or upon fulfilling certain conditions.