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.

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Definitions:

Dominant Strategy

A strategy in game theory that is the best action for a player irrespective of what the opponent does.

Tit-For-Tat

A strategy in game theory where a participant replicates the opponent's previous action, as in a retaliatory or cooperative manner.

Repeated Game

A game-theory concept involving the same game played multiple times, where outcomes can be affected by previous games.

Cournot Model

An economic model used to describe an industry structure in which companies compete on the amount of output they will produce, which they decide upon independently and at the same time.