Andrea has had a savings account for ten years. She noticed over the last two years that the interest rates on her savings account went up in the first year and down in the second year. Which of the following budget scenarios best explains this transition?

A) a budget surplus two years in a row

B) first a balanced budget then a deficit

C) first a balanced budget then a budget surplus

D) first and unbalanced budget then a balanced budget

Question

Social Studies

Ivy

20 October, 20:02

Andrea has had a savings account for ten years. She noticed over the last two years that the interest rates on her savings account went up in the first year and down in the second year. Which of the following budget scenarios best explains this transition?

A) a budget surplus two years in a row

B) first a balanced budget then a deficit

C) first a balanced budget then a budget surplus

D) first and unbalanced budget then a balanced budget

+4

Answers (2)

Know the Answer?

Clark Watkins · Answer 1

the answer ia (B.) first a balanced budget then a deficit

Ice Queen · Answer 2

Answer: the correct answer is B) first a balanced budget then a deficit.

Explanation: If the interest is high I will have more money and if it is down I will have less money that correspond to a balanced budget and a deficit (lack of money).