Consider the Government's Budget Deficit Function

question 124

Multiple Choice

Consider the government's budget deficit function.If the economy goes into a recession,a government budget deficit is most likely to

• A)increase,because government expenditures and tax revenues will both rise.
• B)increase,because government expenditures will rise and tax revenues will decline.
• C)remain unchanged,although there will be a primary budget surplus.
• D)remain unchanged,because changes in government expenditures and tax revenues will balance each other out.
• E)decrease,because government expenditures will decrease and tax revenues will rise.

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Definitions:

Lumbar

Referring to the lower part of the spine, specifically the five vertebrae between the rib cage and the pelvis.

Motor Cortex

The region of the cerebral cortex involved in the planning, control, and execution of voluntary movements.

Spinal Cord

The major column of nerve tissue that is connected to the brain and lies within the vertebral canal and from which the spinal nerves emerge.