If the federal government decreases its expenditures on goods and services by $10 billion and decreases taxes on personal incomes by $10 billion, which of the following will occur in the short run?
A) The federal budget deficit will increase by $10 billion
B) The federal budget deficit will decrease by $10 billion
C) Aggregate income will remain the same
D) Aggregate income will increase by up to $10 billion
E) Aggregate income will decrease by up to $10 billion
Ans: E) Aggregate income will decrease by up to $10 billion
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The degradation of the environment from litter is a
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According to the market clearing model, a one unit permanent increase in government purchases causes:
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