A Government Reduces Its Budget Deficit,but at the Same Time

question 16

Multiple Choice

A government reduces its budget deficit,but at the same time people become concerned that the outlook for future government expenditures and revenues increase the chance it will default.Which of the following is correct?

• A)The reduced budget deficit will raise interest rates in general.The increased risk of default will raise interest rates on government bonds.
• B)The reduced budget deficit will raise interest rates in general.The increased risk of default will reduce interest rates on government bonds.
• C)The reduced budget deficit will reduce interest rates in general.The increased risk of default will raise interest rates on government bonds.
• D)The reduced budget deficit will reduce interest rates in general.The increased risk of default will reduce interest rates on government bonds.

Understand the fundamental principles underlying the accounting process, including cost concepts and the relevance of financial information.

Differentiate between types of businesses (manufacturing, merchandising, and service) and their unique accounting needs.

Recognize the role and importance of ethical conduct in accounting practices.

Comprehend the distinction between financial and managerial accounting and their respective user groups.

---

Definitions:

Interrole Conflict

A type of role conflict that occurs when the expectations of two or more roles that an individual occupies clash.

Person-Role Conflict

A situation where an individual experiences a discrepancy between their job requirements and their personal values, beliefs, or capabilities.

Role Conflict Handling

Strategies and techniques used to address and resolve discrepancies between expectations and reality in job roles.

Assertiveness

The quality of being self-assured and confident without being aggressive, enabling one to express their rights and needs openly.