Suppose an economy has a balanced federal budget, and a large increase in oil prices plunges the economy into a recession. Tax revenues will ________ and expenditures on transfer payments will ________, resulting in a budget ________
A) increase; increase; surplus B) fall; increase; deficit
C) increase; fall; surplus D) fall; fall; deficit
B
Economics
You might also like to view...
Let "C = Ca + by" define the consumption function. The term "b" is known as
A) autonomous consumption. B) induced consumption. C) the marginal propensity to save. D) the marginal propensity to consume.
Economics
Consider the demand functions:
A) Qd = 250 - 2P B) Qd = 300 - 3P Which of the demand functions reflects a higher level of consumer incomes? A) A B) B C) A and B reflect the same consumer incomes. D) More information is needed.
Economics