In Comparison to a Government That Runs a Balanced Budget,when

question 182

Multiple Choice

In comparison to a government that runs a balanced budget,when the government runs a budget deficit

• A)the equilibrium interest rate will fall.
• B)business investment will fall.
• C)household savings will fall.
• D)none of the above

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Definitions:

Percentage

A rate, number, or amount in each hundred, represented by the symbol “%,” used to express proportions and ratios.

Hundred

A numerical value representing ten groups of ten, or the number following ninety-nine.

Deci-

A prefix denoting a factor of one-tenth in metric units of measure.

0.1

A decimal number representing one-tenth, highlighting the concept of division in the decimal system.