An Increase in the Budget Surplus

question 86

Multiple Choice

An increase in the budget surplus

• A)raises net exports and domestic investment.
• B)raises net exports and reduces domestic investment.
• C)reduces net exports and raises domestic investment.
• D)reduces net exports and domestic investment.

---

Definitions:

Collective Bargaining

The process of negotiating the terms of employment between an employer and a group of workers.

Unions

Organizations formed by workers to protect their rights and interests through collective bargaining with employers.

Efficiency Wages

Wages set above the market-clearing level by employers to increase worker productivity, discourage turnover, and reduce shirking.

Nutritious Diet

A diet that provides all the essential nutrients in correct proportions for healthy living.