During a recession, government deficits grow because:
A) government spending often increases as part of expansionary fiscal policy.
B) income tax revenues tend to decrease due to people earning less.
C) sales tax revenues tend to decrease due to people spending less.
D) All of these are reasons why government deficits grow during a recession.
Correct Answer:
Verified
Q85: Transfer payments:
A) are payments from government accounts
Q86: Since 1940, the U.S. government has generally
Q87: The budget deficit may increase when:
A) tax
Q88: A budget deficit is the:
A) amount of
Q89: A budget surplus is the:
A) amount of
Q91: Suppose the country of Piedmont borrows money
Q92: All else equal, Ricardian equivalence predicts:
A) a
Q93: All else equal, Ricardian equivalence predicts that
Q94: Ricardian equivalence will fail to hold if:
A)
Q95: The government budget includes money:
A) coming in
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents