A) domestic investment will rise by $60 million.
B) private saving will fall by $60 million.
C) national saving will fall by $60 million.
C) national saving will fall by $60 million.
D) national saving will increase by $60 million.
Answer the following statements true (T) or false (F)
1) Built-in stability is synonymous with discretionary fiscal policy.
2) The actual budget may be in deficit while the cyclically adjusted budget is in surplus.
3) An increase in the cyclical deficits will automatically increase the cyclically adjusted budget deficit.
4) Tax revenues automatically increase during economic expansions and decrease during
recessions.
1) F
2) T
3) F
4) T
Economics
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