If the government increased defense spending by $1 million and laid off enough Justice Department employees to decrease the Department of Justice budget by $1 million,we would expect the net effect to be
A) an increase in the budget deficit and in transfer payments
B) an increase in the budget deficit and in net taxes
C) an increase in the budget deficit and in government spending
D) no change in the budget deficit because there is no net change in government spending
E) no change in the budget deficit because neither defense spending nor the Department of Justice is included in government spending
Correct Answer:
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