If the economy is in a recession and the federal government is running a deficit, then an expansion would
A) automatically balance the budget.
B) automatically increase the deficit.
C) automatically decrease the deficit.
D) leave the deficit unchanged.
E) increase the deficit only if the interest rate rises.
Correct Answer:
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Q59: The government increases the tax rate on
Q60: If the economy is in a recession,
Q61: Use the figure below to answer the
Q62: Use the figure below to answer the
Q63: Consider the economy of NoTax, where the
Q65: Use the figure below to answer the
Q66: During an expansion, revenues
A)and government outlays decrease.
B)decrease
Q67: Automatic fiscal policy
A)requires action by Parliament.
B)is triggered
Q68: A cyclical deficit occurs when
A)government outlays are
Q69: Which one of the following happens automatically
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