What happens typically to a budget deficit during a recession?
a. It increases because of tax changes.
b. It decreases because of spending decreases.
c. It decreases automatically.
d. It increases automatically.
d
You might also like to view...
The income effect of a price change refers to
A) the change in demand that occurs when both income and price change. B) the change in demand that occurs when consumer income changes. C) the change in the quantity demanded of a good that results from the effect of a change in price on consumer purchasing power, holding everything else constant. D) the change in the quantity demanded that results from a change in price, making the good more or less expensive relative to other goods, holding everything else constant.
The federal government debt as a percentage of GDP fell during
A) 2002-2007. B) 1980-1992. C) 1998-2001. D) World War II.
An essential function for a bank is to
A. Lend all of its deposits. B. Maximize its assets. C. Minimize its reserve ratio. D. Create money through lending.
Which of the following is accurate?
a. Monetary policy is neutral in both the short run and the long run. b. Though monetary policy is neutral in the long run, it may have effects on real variables in the short run. c. Monetary policy has profound effects on real variables in both the short run and the long run. d. Monetary policy has profound effects on real variables in the long run, but is neutral in the short run.