Scenario 32-1

During a recession government revenues from the income tax fall and government transfers rise as the reduction in income and the rise in unemployment raise the number of people who qualify for benefits.
-Refer to Scenario 32-1. What does this change in the deficit do to net capital outflows? Defend your answer.

Question

Scenario 32-1
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During a recession government revenues from the income tax fall and government transfers rise as the reduction in income and the rise in unemployment raise the number of people who qualify for benefits.
-Refer to Scenario 32-1. What does this change in the deficit do to net capital outflows? Defend your answer.

Quizplus · Accepted Answer

The Answer of Scenario 32-1
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During a recession government revenues from the income tax fall and government transfers rise as the reduction in income and the rise in unemployment raise the number of people who qualify for benefits.
-Refer to Scenario 32-1. What does this change in the deficit do to net capital outflows? Defend your answer.

Scenario 32-1 ​

Scenario 32-1