Ceteris paribus,an increase in the government's budget deficit will decrease the financial account surplus.

Name: Ceteris paribus,an increase in the government's budget deficit will decrease the financial account surplus.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Ceteris paribus, an increase in the government's budget deficit typically leads to an increase in the financial account surplus, as the country borrows more from abroad to finance the deficit, resulting in more incoming financial capital.

Ceteris Paribus,an Increase in the Government's Budget Deficit Will Decrease