According to Keynesian economic theory, a budget deficit, or a larger budget deficit, _______ the economy while a budget surplus, or a smaller budget deficit, _______ the economy.
a. stimulates; restrains
b. restrains; stimulates
c. has no effect on; stimulates
d. stimulates; has no effect on
Question 2
Much of the growth in expenditures in recent decades is accounted for by a few policy areas. Which of the following is NOT one of these policy areas?
a. national defense
b. social and income security
c. medical care
d. education