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 aggregate demand, which can widen an inflationary gap if the economy is already operating at or near full capacity.

With Greater Deficit Spending,ceteris Paribus