In the Short Run,a Federal Budget Deficit Will Most Likely

question 53

Multiple Choice

In the short run,a federal budget deficit will most likely _____.

• A)stimulate aggregate supply
• B)reduce federal debt
• C)boost economic growth
• D)reduce national saving
• E)boost domestic saving

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Definitions:

Federal Government

The governing body of a nation, state, or community that operates at the national level, making and enforcing laws over a certain territory.

Judicial Review

The power of courts to assess the constitutionality of legislative acts or government actions.

U.S. Constitution

The supreme law of the United States, establishing the framework of the national government and the rights of the citizens.

Contract Clause

A provision found in the U.S. Constitution that prohibits states from enacting laws that impair the obligation of contracts.