If for Every Dollar Increase in Farm Subsidies the Government

Multiple Choice

If for every dollar increase in farm subsidies the government decreased urban welfare payments by a dollar,we would expect the net effect to be

A) an increase in the budget deficit because government spending has increased
B) a decrease in the budget deficit because transfer payments are not included in the government's budget
C) an increase in the budget deficit because transfer payments have increased
D) an increase in the budget deficit because farm subsidies are transfer payments but urban welfare payments are not
E) no change in the budget deficit