Which of the Following Assumptions Is True of Government Spending

question 176

Multiple Choice

Which of the following assumptions is true of government spending and taxes?

• A) They do not depend on the level of GDP.
• B) They may be changed only through direct action by Congress.
• C) They change only when the price level changes.
• D) They change only upon executive order of the president of the United States.
• E) They are autonomous at low levels of GDP but not at higher levels of GDP.