Assume That the Government Is Currently Balancing the National Budget

Multiple Choice

Assume that the government is currently balancing the national budget so that outlays equal tax revenue.Then the economy starts into an expansion,and the government decides to decrease government spending by $50 billion.As a result,the federal budget will

A) be in deficit by $50 billion.
B) be in surplus by at least $50 billion.
C) remain balanced.
D) be in surplus by less than $50 billion.
E) be in deficit by at least $50 billion.