If government increased Social Security benefits and decreased the salaries of government workers by the same amount,we would expect the immediate effect to be
A) an increase in the budget deficit and in government purchases of goods and services
B) an increase in the budget deficit but no change in government purchases of goods and services
C) an increase in the budget deficit and a decrease in government purchases of goods and services
D) no change in the budget deficit because there has been no change in government purchases of goods and services
E) no change in the budget deficit because government purchases of goods and services have decreased by the same amount as transfer payments have increased
Correct Answer:
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