The Diagram Below Shows the Budget Deficit Function for a Government

Multiple Choice

The diagram below shows the budget deficit function for a government in a hypothetical economy. FIGURE 31-1 Refer to Figure 31-1.Initially,suppose real GDP is $100 million and the budget deficit is $4 million,as shown by point A.If the government implements an expansionary fiscal policy by decreasing lump-sum taxes,then

A) the budget deficit function would shift up.
B) the budget deficit function would shift down.
C) the budget deficit function would become steeper.
D) the budget deficit function would become flatter.
E) the size of the budget deficit would decrease as we move from point A to point B.