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

---

Definitions:

Right of Recourse

The legal right to demand compensation or payment from a third party after fulfilling an obligation, especially in financial transactions.

Discharge

(1) The termination of an obligation, such as occurs when the parties to a contract have fully performed their contractual obligations. (2) The termination of a bankruptcy debtor’s obligation to pay debts.

Negotiable Instrument

A written document guaranteeing the payment of a specific amount of money, either on demand or at a set time, to the person possessing it.

Intelligence

The ability to acquire and apply knowledge and skills, or information gathered for analysis in contexts such as security or business.