Budget deficits tend to: a. decrease over time. b. increase during expansions. c. increase over time....
Budget deficits tend to: a. decrease over time. b. increase during expansions. c. increase over time. d. increase during recessions. e. grow as the economy grows and shrink as the economy shrinks.
Homework Answers
Budget deficit tends to occur when government spending exceeds the tax revenue collected by the government.
Generally, when economy is in downturn or in recessionary phase that the government generally increases its spending to stimulate economy.
Also, during recession, income level - both personal and business - are decreasing and therefore tax revenue also decreases.
So, increase in government spending on one hand and the decrease in tax revenue on the other increases the budget deficit during recession.
Thus, budget deficit tends to increase during recessions.
Hence, the correct answer is the option (d).
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Budget deficits tend to: a. decrease over time. b. increase
during expansions. c. increase over time....
Question 76 Budget deficits tend to • increase over time. increase during recessions. increase during expansions....
Question 76 Budget deficits tend to • increase over time. increase during recessions. increase during expansions. grow as the economy grows and shrink as the economy shrinks. decrease over time. - Previous esc
Higher budget deficits would tend to a. raise interest rates b. reduce investment c. reduce the...
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Budget changes that occur automatically during expansions and recessions: A. make economic fluctuations more pronounced than...
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2) During a Recession, the MPC tends to a) Increase, increases b) Decrease, decreases c) Decrease,...
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Stagflation is most likely to occur during __________. A. Aggregate Supply-driven expansions B. Aggregate Supply-driven recessions...
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Question 4 Flag question Not yet answered Marked out of 1.00 A feature of automatic stabilizers...
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QUESTION 13 According to the indifference principle housing prices a tend to converge over time b tend to leave in...
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me U.S. real net exports are typically A. negative, and usually fall in recessions and rise in expansions. ts B. p...
me U.S. real net exports are typically A. negative, and usually fall in recessions and rise in expansions. ts B. positive, and usually rise in recessions and fall in expansions. O C. positive, and usually fall in recessions and rise in expansions. OD. negative, and usually rise in recessions and fall in expansions. Tevt Why did US net exports increase during the 2007-2009 recession? A. China, the major trading partner of the US, suffered a more severe recession than the...
Which one of these is NOT an example of an automatic stabilizer? Select one: O a....
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QUESTION 8 Higher rates of inflation would tend to: O a. increase velocity and decrease nominal...
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Question 76 Budget deficits tend to • increase over time. increase during recessions. increase during expansions. grow as the economy grows and shrink as the economy shrinks. decrease over time. - Previous esc
2) During a Recession, the MPC tends to a) Increase, increases b) Decrease, decreases c) Decrease, increases d Increase, decreases which the recessionary gap 3) Suppose that the MPC is .75 and the U.S Federal Government reduces taxes by 10 million dollars. After 3 rounds of the multiplier process RGDP will change by a) 4.23 million b) 17.34 million c) 23.13 million dollars. d) 30 million 4) "George W. Bush's $152 billion tax rebate plan of 2008 was designed to...
Question 4 Flag question Not yet answered Marked out of 1.00 A feature of automatic stabilizers is that they: Select one: a. automatically result in surpluses during recessions and deficits during economic booms b. automatically decrease the price level during inflation and increase the price level during deflation. C. do not require any legislative action by Congress to take effect. O d. guarantee that the federal budget will be balanced over the course of the business cycle.. o e. simultaneously...
QUESTION 13 According to the indifference principle housing prices a tend to converge over time b tend to leave individuals indifferent about where they live c. only tend to be different to compensate individuals for differences in living conditions od only B&C QUESTION 14 You operate a small poultry farm in east Texas. You sell most of your output through a regional distributor of poultry products in the area. In this case, you are subject to a Low buyer power...
me U.S. real net exports are typically A. negative, and usually fall in recessions and rise in expansions. ts B. positive, and usually rise in recessions and fall in expansions. O C. positive, and usually fall in recessions and rise in expansions. OD. negative, and usually rise in recessions and fall in expansions. Tevt Why did US net exports increase during the 2007-2009 recession? A. China, the major trading partner of the US, suffered a more severe recession than the...
Which one of these is NOT an example of an automatic stabilizer? Select one: O a. Interest rates tend to fall during recessions b. People pay more income tax when the economy is growing and their income rise c. The government typically increases spending on highways during expansions d. Wages'tend to fall when unemployment is high e. Unemployment compensation tend to rise during recessions
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