If the Federal Budget Is Initially Balanced and Government Expenditures

question 142

Multiple Choice

If the federal budget is initially balanced and government expenditures remain constant, then an
Increase in GDP will _________ tax revenues and create a budget _________.

• A) increase tax revenues and create a budget surplus.
• B) increase tax revenues and create a budget deficit.
• C) decrease tax revenues and create a budget surplus.
• D) decrease tax revenues and create a budget deficit.

---

Definitions:

External Locus

A belief system where individuals perceive their outcomes and experiences as being controlled by external forces or fate rather than their own actions.

Internal Locus

The belief that one's actions and outcomes are a result of personal decisions and efforts rather than external factors.

Self-Actualization

The need to actualize or "make actual" your unique talents and abilities.

Habituation

The psychological process by which an individual becomes accustomed to a stimulus and consequently responds less to it over time.