A government budget deficit
A) is more inflationary when financed by higher tax rates.
B) is generally considered undesirable in the Keynesian view of economic policy.
C) can never occur when the structural deficit is zero.
D) that is financed by creating new money draws funds that might otherwise have been spent on consumption and investment.
E) could result from recession-induced decreases in tax revenues rather than from increases in government spending.
Correct Answer:
Verified
Q18: The ways the federal government can finance
Q19: A budget deficit has its inflationary impact
Q20: One generally recognized problem of large government
Q21: According to the textbook discussion,the principal way
Q22: An excess of government expenditures over tax
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