Multiple Choice
Suppose a country has been running a persistent government budget deficit. If the deficit is reduced, but remains positive,
A) interest payments on the debt immediately will decrease.
B) government debt will decrease.
C) the country will experience a budget surplus.
D) government debt will increase.
Correct Answer:
Verified
Correct Answer:
Verified
Q68: The largest item of government outlays is
Q69: Automatic stabilizers<br>A) are triggered by the business
Q70: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5270/.jpg" alt=" -In the above
Q71: The government begins year 1 with $25
Q72: Suppose the tax rate on interest income
Q74: Once supply side effects are taken into
Q75: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5270/.jpg" alt=" -What is the
Q76: In response to the economic crisis in
Q157: The largest component of the fiscal imbalance
Q173: Which of the following government bodies does