(50 points answer asap)
Which possible consequence can a budget deficit rather than a budget surplus have for a nation?
The deficit can push the Treasury department to sell fewer bills, which could result in commercial banks failing.
The deficit can create national debt, and the cost of paying off that debt could lead to the federal government cutting funding for important programs.
The deficit can lead to political instability when members of Congress resign over their failure to balance the budget.
The deficit can prevent the federal government from insuring deposits, and people could lose confidence in commercial banks.
Which tool would a nation use to try and protect its domestic industries?
imports
balance of trade
quota
comparative advantage
Which effect can excessive imports have on a country?
It leads to a decrease in the gross domestic product.
It creates a trade surplus.
It drives down the value of that country’s currency.
It forces that country to privatize.
Which disadvantage does a market economy have?
the lack of private ownership
the cycle of growth and decline
inefficient production
too much government regulation
