If there is initially a federal budget deficit, and taxes rise, while transfer payments fall:
a. AD increases and the budget deficit increases.
b. AD increases and the budget deficit decreases.
c. AD decreases and the budget deficit increases.
d. AD decreases and the budget deficit decreases.
d
Economics
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Which of the following is the most likely cause of a recession according to classical and new classical models?
a. government policy. b. unstable expectations. c. a fall in expected profits. d. an anticipated change in the money supply. e. none of the above.
Economics
The natural rate of unemployment
a. is constant over time. b. varies over time, but can't be changed by the government. c. is the unemployment rate that the economy tends to move to in the long run. d. depends on the rate at which the Fed increases the money supply.
Economics