What Will Be the Impact on AD and Budget Deficit

question 68

Multiple Choice

What will be the impact on AD and budget deficit if there is initially a federal budget deficit,and government purchases and transfer payments both rise?

• A)AD increases and the budget deficit decreases.
• B)AD decreases and the budget deficit decreases.
• C)AD decreases and the budget deficit increases.
• D)AD increases and the budget deficit increases.

---

Definitions:

Dysfunctional Conflict

Conflict that hinders organizational performance, inhibits cooperation, and fosters hostility among members.

Demographic Backgrounds

Demographic Backgrounds pertain to the socio-economic, cultural, or ethnic characteristics that describe specific groups of people within a population.

Pooled Interdependence

A form of organizational interdependence where different departments or units contribute independently to a collective output.

Capital Expansion

The process of investing in additional resources, such as equipment or facilities, to increase the capacity or efficiency of a business.