If There Is Initially a Federal Budget Surplus, and Government

question 66

Multiple Choice

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

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

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Definitions:

Emotional Stability

A personality trait characterized by one's ability to remain calm and composed, especially in stressful situations.

Conscientiousness

A personality trait characterized by diligence, carefulness, thoroughness, self-discipline, and the desire to perform tasks well.

Openness

A personality trait characterized by a willingness to try new experiences, think creatively, and be open to different ideas.

Strong Situation

A situation that overwhelms the effects of individual personalities by providing strong cues for appropriate behavior.