What Will Be the Impact on AD and the Budget

question 139

Multiple Choice

What will be the impact on AD and the budget surplus if there is initially a federal budget surplus and government purchases rise while taxes fall?

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

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Definitions:

Carpels

The female reproductive organ of a flower, consisting of the stigma, style, and ovary, and involved in receiving pollen and producing seeds.

Extensor Muscles

Muscles that work to extend or straighten a joint, opposite to flexor muscles.

Flexed

Bent or tensed, often referring to a muscle position.

Fibula

A long, thin bone located on the lateral side of the tibia in the lower leg, important for stabilizing the ankle and supporting muscles.