Consider the Government's Budget Deficit Function

question 117

Multiple Choice

Consider the government's budget deficit function.With an unchanged fiscal policy by government,an increase in GDP tends to ________ net tax revenues and thus ________ the budget deficit.

• A)raise; raise
• B)raise; lower
• C)lower; raise
• D)lower; lower
• E)lower; leave unchanged

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Definitions:

Prenatal Factors

Environmental and genetic influences that affect the development of the fetus during pregnancy.

Temperament

The aspects of an individual's personality, such as introversion or extroversion, that are believed to be innate rather than learned.

Differentiating

The process of distinguishing or identifying differences between two or more things or people.

Visual Cliff

An experimental setup used to study depth perception and fear of heights in infants, involving an apparent, but safe, drop-off.