Which of the Following Is True of an Increase in a Federal

Multiple Choice

Which of the following is true of an increase in a federal government budget surplus?

A) When the surplus increases,revenues rise less than expenditures.
B) The aggregate demand curve shifts rightward as a result of an increasing surplus.
C) The unemployment rate falls as a result of an increasing surplus.
D) Such an increase in the surplus might close an expansionary gap.
E) The natural rate of unemployment increases as a result of an increasing surplus.