If there is initially a federal budget surplus, and taxes rise, while transfer payments fall:
A) AD increases and the budget surplus increases.
B) AD increases and the budget surplus decreases.
C) AD decreases and the budget surplus increases.
D) AD decreases and the budget surplus decreases.
E) there is an indeterminate effect on both AD and the budget deficit.
Correct Answer:
Verified
Q76: During a recession, total public assistance payments
Q83: Supply-side economics stress that:
A)aggregate demand is the
Q93: The most important automatic stabilizer is:
A)open market
Q100: The crowding-out effect implies that:
A)increases in government
Q104: If there is initially a federal budget
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents