The Expected Effects of an Increased Budget Deficit Are

question 59

Multiple Choice

The expected effects of an increased budget deficit are

• A)higher real interest rates.
• B)exchange rate depreciation.
• C)lower inflation.
• D)All of the above are correct.

Understand how the elasticity of demand and supply affects the burden of a tax.

Learn about the major sources of revenue and expenditure for federal, state, and local governments.

Grasp the concept of marginal tax rates and how they apply to additional income.

Recognize the regressive nature of certain taxes and why.