Asked by Karren Shaalini Gunalan on Jun 14, 2024
Verified
Identify the correct statement.
A) A budget deficit is a flow variable,while debt is a stock variable.
B) A budget deficit is a stock variable,while debt is a flow variable.
C) A budget deficit and debt are both stock variables.
D) The budget deficit decreases when aggregate demand decreases.
E) Debt increases when the budget deficit decreases.
Budget Deficit
The financial situation where a government's expenditures exceed its revenues within a specified period.
Flow Variable
A quantity measured over a specified period of time, indicating the rate of change in a variable.
Stock Variable
A quantity measured at a specific point in time, representing a snapshot of a certain value, such as the amount of money in a savings account.
- Comprehend the principles of stagflation, national debt, fiscal deficit, and their impact on the economy.
Verified Answer
Learning Objectives
- Comprehend the principles of stagflation, national debt, fiscal deficit, and their impact on the economy.
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