Consider the Government's Budget Deficit Function

question 124

Multiple Choice

Consider the government's budget deficit function.If the economy goes into a recession,a government budget deficit is most likely to

• A)increase,because government expenditures and tax revenues will both rise.
• B)increase,because government expenditures will rise and tax revenues will decline.
• C)remain unchanged,although there will be a primary budget surplus.
• D)remain unchanged,because changes in government expenditures and tax revenues will balance each other out.
• E)decrease,because government expenditures will decrease and tax revenues will rise.

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Definitions:

Organic Product

Materials or substances originating from biological sources, especially those made up of carbon-based compounds.

Major Organic

This term lacks specificity without additional context but could refer to the principal or most significant organic compound(s) or molecule(s) in a given context.

Methyl Ester

Organic compounds formed from the reaction of an acid with methanol, characterized by a methyl group attached to the ester functional group.

Carboxylic Acid

Organic acids characterized by the presence of at least one carboxyl group (-COOH), which gives them their acidic properties.