If There Is Initially a Federal Budget Deficit, and Taxes

question 95

Multiple Choice

If there is initially a federal budget deficit, and taxes rise, while transfer payments fall:

• A)AD increases and the budget deficit increases.
• B)AD increases and the budget deficit decreases.
• C)AD decreases and the budget deficit increases.
• D)AD decreases and the budget deficit decreases.
• E)there is an indeterminate effect on both AD and the budget deficit.

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Definitions:

Diversity Competency

The ability to understand, respect, and value the differences among individuals, contributing to an inclusive and effective working environment.

Chubb's Business

Chubb's business focuses on providing insurance products and services to individuals, families, and businesses.

Evidence-Based Management

A managerial approach focusing on making decisions and policies through the conscientious, explicit, and judicious use of the best available evidence.

Deeper Diagnosis

A thorough and detailed analysis or examination to understand underlying causes or complexities of an issue.