Solved

Consider the Government's Budget Deficit Function,graphed with Dollars on the Vertical

Question 45

Multiple Choice

Consider the government's budget deficit function,graphed with dollars on the vertical axis and real GDP on the horizontal axis.This function is downward sloping because as real GDP


A) falls,the budget deficit function shifts down.
B) falls,tax revenues rise,decreasing the deficit or increasing the surplus.
C) rises,tax revenues rise,decreasing the deficit or increasing the surplus.
D) rises,tax revenues fall,decreasing the deficit or increasing the surplus.
E) rises,it leads to increasing debt-service payments.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents