Which of the Following Is True

question 100

Multiple Choice

Which of the following is true?

• A)Though not required by law, the government tends to run a balanced budget year after year.
• B)If there is a budget deficit, the government must borrow to pay for the excess spending.
• C)If there is a budget deficit, the government must ask the Fed to print money to finance excess spending.
• D)By law the federal budget must balance.
• E)If there is a budget deficit, the government must raise taxes.

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Definitions:

Investment Projects

Initiatives undertaken by businesses to invest in assets or activities with the expectation of generating future benefits or returns.

Internal Rate Of Return

A financial metric used to evaluate the profitability of potential investments, calculated as the discount rate that makes the net present value of all cash flows from the investment equal to zero.

Cash Savings

Funds that have been preserved as a reserve and are readily available for use when needed.

Required Rate Of Return

The minimum expected rate of return on an investment, necessary to compensate for the risk undertaken, varying between investments.