If the Government's Budget Is Balanced at the Start of a Recession,and

question 209

Multiple Choice

If the government's budget is balanced at the start of a recession,and the government is attempting to stabilize the economy through fiscal policy

• A)a budget surplus would be expected.
• B)a budget deficit would be expected.
• C)government spending,taxes,and transfer payments must all be reduced in a fashion that preserves a balanced budget.
• D)it should increase government spending,lower taxes,and increase transfer payments in a manner that preserves a balanced budget.
• E)government spending,taxes,and transfer payments must remain unchanged.

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