If Government Increases the Size of Its Full-Employment Surplus, We

Multiple Choice

If government increases the size of its full-employment surplus, we can:

A) assume that government is causing interest rates to rise.
B) not determine government's impact on the economy without also knowing the status of the actual budget.
C) assume that government is having a contractionary effect on the economy.
D) assume that government is having an expansionary effect on the economy.