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Exam 4 iVATs With 100% ACCURATE QUESTIONS AND ANSWERS GRADED A+
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Exam 4 iVATs With 100% ACCURATE QUESTIONS AND ANSWERS GRADED A+
Practice questions for this set
, Terms in this set (72)
When expenditures exceed revenues, the In deficit
government budget is:
When revenues exceed expenditures, the In surplus
government budget is:
Utilize the following information concerning the $687,500
federal government's finances to answer the
following question:
Multiplier effect: 1.25
Tax rate: 25%
Increase in spending: $1,000,000
Question:
What is the deficit from the increase in government
spending?
Why can the deficit incurred from an increase in The increase in government spending can increase the overall level of income in the economy. The
government spending be less than the increase in government will collect taxes on this income. This will cause the deficit to be less than the increase in
Exam 4 iVATs
government spending? spending.
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