A nation's balance of payments is the accounting record of all economic transactions between its residents and residents of the rest of the world

Discretionary fiscal policy

A) may not have desired effects on real GDP because it leads to decreases in aggregate demand. B) may not have desired effects on real GDP because of the time lags. C) would have a larger effect on real GDP if the multiplier was smaller. D) may not have desired effects on real GDP because it leads to increases in aggregate demand.

If the inflation rate falls, what will happen to the budget deficit?

a. It will rise, because government spending will rise. b. It will rise, because interest payments will rise. c. It will fall, because tax receipts will increase. d. It will fall, because interest payments will fall.