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

question 114

Multiple Choice

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

• A)An increase in surplus results in a decrease in the national saving.
• B)An increase in surplus shifts the aggregate demand curve rightward.
• C)An increase in surplus increases the federal debt.
• D)An increase in surplus dampens aggregate demand in the short run.
• E)An increase in surplus increases the natural rate of unemployment.