A federal surplus is deflationary when all else is held constant

Transfer payments typically

A) rise during expansionary periods. B) fall during recessions. C) do not change as the economy expands and contracts during the business cycle. D) fall during expansionary periods and rise during recessionary periods.

Competitive firms consider private costs, but disregard external costs, when making their economic decisions

a. True b. False Indicate whether the statement is true or false