With greater deficit spending,ceteris paribus,
A)Aggregate spending should fall.
B)Any inflationary gap will become larger.
C)There are greater leakages.
D)There is inadequate information to tell what happens to aggregate spending.

Question

Quizplus · Accepted Answer

Greater deficit spending increases the government's demand for goods and services, which can increase aggregate demand and potentially create an inflationary gap.

With Greater Deficit Spending,ceteris Paribus