Which of the Following Is True of an Increase in a Federal

question 70

Multiple Choice

Which of the following is true of an increase in a federal government budget surplus?

• A)When the surplus increases,revenues rise less than expenditures.
• B)The aggregate demand curve shifts rightward as a result of an increasing surplus.
• C)The unemployment rate falls as a result of an increasing surplus.
• D)Such an increase in the surplus might close an expansionary gap.
• E)The natural rate of unemployment increases as a result of an increasing surplus.

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Definitions:

Derivative Action

A lawsuit brought by a company shareholder against company directors, officers, or others for misconduct.

Rectification Action

A legal process aimed at correcting a mistake in a document to reflect the true intention of the parties involved.

Dissolution Action

A legal process aimed at terminating a business, marriage, or other formal relationships, according to the governing laws.

Ultra Vires Act

An action taken by a corporation or government body that lies beyond the powers granted to it by law or under its own articles of incorporation or constitution.