An equal increase in government purchases and taxes will cause ...

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An equal increase in government purchases and taxes will cause
 
  A) an increase in real GDP.
  B) an increase in the budget surplus.
  C) no change in real GDP.
  D) a reduction in cyclically adjusted budget surplus.

Question 2

In October 2008, Congress passed the Troubled Asset Relief Program (TARP), under which the Treasury provided ________ to banks in exchange for ________.
 
  A) financial advice; promises to expand mortgage lending
  B) funds; stock
  C) bonds; cash
  D) lines of credit; loan guarantees

[Jordin Calloway]

Answer to Question 1

A

Answer to Question 2

B

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Thank you

[Jordin Calloway]

Happy to help you