Assume the Economy Is in a Boom Period

Multiple Choice

Assume the economy is in a boom period. The increase in revenues in the economy has caused government revenues to increase. As a result, the federal government's budget now shows a surplus. If Congress increases government expenditures:

A) inflation would likely result.
B) unemployment would increase.
C) the economy would stabilize at a higher rate of growth.
D) a government deficit would occur.