If the federal budget is initially balanced and government expenditures remain constant, then a
Decrease in GDP will
A) decrease tax revenues and create a budget surplus.
B) increase tax revenues and create a budget surplus.
C) decrease tax revenues and create a budget deficit.
D) increase tax revenues and create a budget deficit.
Correct Answer:
Verified
Q25: All of the following are examples of
Q26: What is an automatic stabilizer?
A) It refers
Q27: Judged by international standards, the national debt
Q28: Suppose a country's debt rises by 6%
Q29: Suppose in the beginning of 2013, a
Q31: Suppose in the beginning of 2013, a
Q32: Suppose a country has a national debt
Q33: The national debt
A) is the sum of
Q34: Which of the following is an automatic
Q35: Which of the following statements is true
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