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If the Economy Goes into a Recession,the Structural Budget Deficit

Question 66

Multiple Choice

If the economy goes into a recession,the structural budget deficit is most likely to


A) increase,because government expenditures and tax revenues will both rise.
B) increase,because government expenditures will rise and tax revenues will decline.
C) remain unchanged,although there will be a primary budget surplus.
D) remain unchanged,unless government actively changes its fiscal policy.
E) decrease,because government expenditures will decrease and tax revenues will rise.

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