There Is an Inverse Relationship Between the Budget Deficit and Real

Multiple Choice

There is an inverse relationship between the budget deficit and real GDP because

A) of adjustments in inflation.
B) of the inverse relationship between interest payments on the debt and real GDP.
C) as real GDP increases, tax revenue increases and transfer payments decline.
D) as real GDP declines, taxes increase and transfer programs decline.
E) as real GDP increases, taxes decline and spending on transfer programs increases.