As You're Checking Out the Online Edition of Your Local

question 221

Multiple Choice

As you're checking out the online edition of your local newspaper, you quickly scan a report in the business section that says government spending will again exceed tax revenues in the current year. What does this mean for the economy?

• A) The total national debt is likely to increase.
• B) The national deficit is likely to decrease.
• C) The rate of inflation is likely to fall.
• D) The monetary policies pursued by the Fed need tightening.