Multiple Choice
A recessionary gap causes national debt to increase because
A) the growth in GDP slows.
B) interest on previously incurred debt must be paid.
C) recessionary periods require huge buildups of defense materials.
D) income tax receipts drop off markedly.
Correct Answer:
Verified
Correct Answer:
Verified
Q183: A mathematical formula for the deficit would
Q184: Increases in government spending or tax cuts
Q185: If the national debt is owned by
Q186: Under a balanced budget policy, a sharp
Q187: Expansionary fiscal policy normally raises interest rates.
Q189: Why does the government not have to
Q190: The deficit can be defined in simple
Q191: The crowding-in effect results from<br>A)a low MPS.<br>B)induced
Q192: The appropriate fiscal policy stance depends, at
Q193: Figure 32-1<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8592/.jpg" alt="Figure 32-1