Multiple Choice
If aggregate output decreases, _____
A) federal budget deficit decreases.
B) tax revenue increases.
C) automatic stabilizers will tend to increase the size of the deficit.
D) automatic stabilizers will tend to decrease the size of the deficit.
E) transfer payments decrease as fewer people become eligible for public assistance.
Correct Answer:

Verified
Correct Answer:
Verified
Q3: The functional finance philosophy is based on
Q55: The budget deficit tends to decline during
Q115: A major problem with the implementation of
Q116: The federal budget is _<br>A) submitted by
Q117: If discretionary fiscal policy creates a federal
Q118: Outstanding liabilities of federal, state, and local
Q121: A possible budget reform involves _<br>A) adopting
Q123: Which of the following correctly describes the
Q124: The budget deficit increased during the Great
Q125: How long can the country run a