If Government Increases the Size of Its Cyclically Adjusted Surplus

question 153

Multiple Choice

If government increases the size of its cyclically adjusted surplus, we can

• A) assume that government is causing interest rates to rise.
• B) not determine government's impact on the economy without also knowing the status of the actual budget.
• C) assume that government is having a contractionary effect on the economy.
• D) assume that government is having an expansionary effect on the economy.