Practice mode Budget Deficits And The Trade Balance

Which group would be most harmed by a UK government budget deficit?

Correct answer D. BAE Systems wishing to sell aircraft to Saudi Arabia

Explanation

A deficit raises UK interest rates and attracts foreign capital, appreciating the pound, which makes exports such as BAE aircraft more expensive for foreign buyers.

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Which group would be most harmed by a UK government budget deficit?

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Which group would be most harmed by a UK government budget deficit?

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