How Will an Increase in the Government Budget Surplus as a Result

question 216

Multiple Choice

How will an increase in the government budget surplus as a result of lower government spending (with no change in net taxes) affect private saving in the economy?

• A)Private saving will increase by the amount of increase in the budget surplus.
• B)Private saving will decrease by the amount of increase in the budget surplus.
• C)Private saving will decrease by less than the amount of increase in the budget surplus.
• D)Private saving will be unaffected by the increase in the budget surplus.

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Definitions:

Pluralism

Existence of recognized diverse groups within a single (peaceful) society.

Dogma

Dogma refers to a principle or set of principles laid down by an authority as incontrovertibly true, often used in the context of religion or philosophies.

Canadian Charter

A fundamental document that outlines the rights and freedoms of Canadians, formally known as the Canadian Charter of Rights and Freedoms.

Multicultural Heritage

The diverse cultural backgrounds, traditions, and histories that make up a society, often celebrated and recognized for contributing to the social fabric.