Question

A moderate increase in a budget deficit that leads to a _____________________ is not necessarily a cause for concern

Answer 1

A moderate increase in a budget deficit that leads to a moderate increase in a trade deficit and a moderate appreciation of the exchange rate is not necessarily a cause for concern.

What is Budget Deficit?

• When spending surpasses income—that is when the entire amount of money one spends exceeds the total amount of money one gets in—a budget deficit results.
• Both small and big scales of this are possible. For instance, if a person's total monthly costs exceed his or her monthly household income, the household budget may be in deficit.
• When operating expenses exceed revenue, businesses have budget shortfalls.
• The same fundamental idea still holds true: the corporation is in the red because its total revenue is less than what it owes. This can lead to debt, just like it can on an individual basis.

To learn more about Budget Deficit refer to:

brainly.com/question/14181631

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