Which of the Following Would Decrease the Size of a Federal

question 64

Multiple Choice

Which of the following would decrease the size of a federal budget deficit?

• A)a recession
• B)an increase in defense spending
• C)growth in real GDP
• D)a decrease in taxes
• E)an increase in transfer payments

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Definitions:

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a specified time period.

Agricultural Products

Goods produced through farming and agriculture, such as crops and livestock.

Labor Force

The total number of people employed or actively seeking employment in a country or specific economic sector.

Agriculture

The practice of cultivating the soil, growing crops, and raising livestock for human use and consumption.