The federal deficit of the United States, over the past three decades, has been
A) strongly procyclical in part because tax revenues rise during recession and fall during boom.
B) strongly anticyclical in part because tax revenues fall during recession and rise during boom.
C) strongly procyclical in part because transfers rise during recession and fall during boom.
D) strongly procyclical in part because tax revenues are stable over the business cycle even as transfers rise during recession and fall during boom.
E) none of the above.
Correct Answer:
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Q2: Revenue collected by sales and property taxes
Q3: Which of the following is not a
Q4: Federal purchases of goods and services in
Q5: Federal government policies during the 1980s and
Q6: Transfer payments made by governments over the
Q8: Which of the following reasons might explain,
Q9: Purchases of goods and services by the
Q10: Indexing federal income tax rates to inflation
Q11: The tax elasticity for the federal government
Q12: Purchases made by governments over the business
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