If There Is Initially a Federal Budget Surplus and Government

question 56

Multiple Choice

If there is initially a federal budget surplus and government purchases and transfer payments both rise:

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

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Definitions:

Earth's Crust

The Earth's crust is the outermost solid shell of the planet, composed of rock, and is the surface upon which we live. It varies in thickness and is thinner under the oceans and thicker under continental land masses.

Quartz

A hard, crystalline mineral composed of silicon and oxygen atoms, widely used in jewelry and as an industrial abrasive.

Feldspar

A group of rock-forming minerals that are among the most abundant minerals in the Earth's crust, used in ceramics and glassmaking.

Oxide Minerals

Minerals composed of oxygen and one or more metals, common in the Earth's crust and important in various geological processes.