Other Things the Same,the Effects of an Increase in Transfer

question 199

Multiple Choice

Other things the same,the effects of an increase in transfer payments on the government's budget deficit will lead to

• A)greater investment.
• B)a higher interest rate.
• C)higher public saving.
• D)All of the above are correct.

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Definitions:

Mediocre Economists

Economists who may possess average skills or lack the influence of leading thinkers in their field.

Observable

A characteristic or phenomenon that can be seen, measured, or otherwise detected through empirical methods.

Self-interest

The pursuit of individual advantage or profit, often regarded as a basic economic driving force.

Adam Smith

An 18th-century Scottish economist and philosopher, often considered the father of modern economics, best known for his theory of the invisible hand guiding free markets.