Everything else remaining the same, as the economy enters a recession,
A) tax revenues rise and interest payments on the debt rise.
B) tax revenues and transfer payments rise.
C) government outlays rise and tax revenues fall.
D) government outlays tend to fall and tax revenues fall.
E) interest payments on the debt rise and tax revenues fall.
Correct Answer:
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Q43: Norland has the budget deficit of $15
Q44: A tax on labour income
A)decreases the demand
Q45: The cyclical deficit
A)is a persistent economic phenomenon.
B)occurs
Q46: Lowering taxes on employment _, which _
Q47: If the economy is in an expansion,
Q49: The structural deficit is the deficit
A)in a
Q50: Currently the government of Ricardia has outlays
Q51: Suppose that in China, investment is $400
Q52: Increasing taxes on business and investment _
Q53: A tax on interest income
A)decreases the demand
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