Question
Why can the deficit incurred from an increase in government spending be less than the increase in government spending? A) The increase in government spending
Why can the deficit incurred from an increase in government spending be less than the increase in government spending?
A) The increase in government spending can increase the overall level of income in the economy. The government will collect taxes on this income. This will cause the deficit to be less than the increase in spending.
B) The increase in government spending can decrease the overall level of income in the economy. The government will therefore collect less in taxes. This will cause the deficit to be greater than the increase in spending.
C) None of the available answers.
D) The increase in government spending can decrease the overall level of income in the economy. The government will therefore collect less in taxes. This will cause the deficit to be less than the increase in spending.
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Ecopolitical Homelessness Defining Place In An Unsettled World
Authors: Gerard Kuperus
1st Edition
1317232704, 9781317232704
