Which of the Following Is True of an Increase in a Federal

question 70

Multiple Choice

Which of the following is true of an increase in a federal government budget surplus?

• A)When the surplus increases,revenues rise less than expenditures.
• B)The aggregate demand curve shifts rightward as a result of an increasing surplus.
• C)The unemployment rate falls as a result of an increasing surplus.
• D)Such an increase in the surplus might close an expansionary gap.
• E)The natural rate of unemployment increases as a result of an increasing surplus.