Asked by
Kyndall Parkins
on Nov 11, 2024
Verified
The federal budget deficit becomes _____ during recessions because _____.
A) smaller;transfer payments increase and tax revenues decline
B) larger;transfer payments increase and tax revenues decline
C) larger;both transfer payments and tax revenues increase
D) smaller;both transfer payments and tax revenues increase
E) smaller;both transfer payments and tax revenues decrease
Transfer Payments
Payments made by the government to individuals or other organizations without receiving any goods or services in return.
Federal Budget Deficit
The financial situation in which the federal government's expenditures exceed its revenues in a given fiscal year, leading to borrowing or debt accumulation.
- Ascertain the contribution of automatic stabilizers to the federal budget and analyze their influence on economic conditions.
- Analyze how government expenditure and tax strategies influence economic phases.
Verified Answer
AW
Learning Objectives
- Ascertain the contribution of automatic stabilizers to the federal budget and analyze their influence on economic conditions.
- Analyze how government expenditure and tax strategies influence economic phases.