Complete Question:
One of the long-run effects of higher government budget deficits:
A. is growth in the economy's private sector at the same time the government sector shrinks.
B. a redistribution of real Gross Domestic Product (GDP) away from government-provided goods and toward more privately provided goods. C. a fall in the equilibrium price level.
D. an increase in the government's share of the nation's economic activity.
Answer:
D. an increase in the government's share of the nation's economic activity.
Explanation:
One of the long-run effects of higher government budget deficits is an increase in the government's share of the nation's economic activity because it would be mainly responsible for funding of the economy, thereby causing higher real Gross Domestic Product (GDP).
A government budget deficit arises when government expenses exceed it's revenue.
It usually expresses the financial health of a nation over a period of time.
Answer:
Explanation:
When there are more substitutes for a product, the demand for the product is more price elastic. The implication of this is that the demand of such product will drop when there is increase in it price because people can get another product which will play the same role with the previous at a lesser price. Hence, the demand for the product vis more price elastic.
Answer:
Dr Fair Value Adjustment (Available-for-Sale) $660
Cr Unrealized Holding Gain or Loss—Equity $660
Explanation:
Culver Company Journal entry
Dr Fair Value Adjustment (Available-for-Sale) $660
Cr Unrealized Holding Gain or Loss—Equity $660
Fair Value Adjustment (Available-for-Sale)
Debit Balance $140
Adjustment $660
($3,500-$2,840)
Balance 800
Answer:
The efficient outcome would be greater than 150 units.
Answer:
The correct answer is letter "C": risk-free rate.
Explanation:
The United States government issues a variety of debt obligations to finance its operations. Those with the shortest maturity are called Treasury Bills or T-Bills. One of the unique features of T-Bills is that the government does not make regular interest payments to the holder. Instead, the securities are sold at a price below its face value resulting in a profit at the maturity date.
T-Bills are seen as low-risk investments compared to other securities being <em>the closest to risk-free return</em> in the market.
