Author Question: Starting with a situation where there is a substantial budget deficit, when tax revenues grow faster ... (Read 62 times)

mrsjacobs44 · **on:** Jun 30, 2018

Starting with a situation where there is a substantial budget deficit, when tax revenues grow faster than federal expenditures, the government will experience:
a. a balanced budget.
b. an increasing national debt.
c. a declining budget surplus.
d. a declining budget deficit.
e. an increasing budget deficit.

Question 2

Steel producers offer to sell steel to U.S. auto producers at a much lower price than in the past. As a result one would expect:
a. no change in the supply of automobiles.
b. an increase in the demand for automobiles.
c. an increase in the supply of automobiles.
d. a decrease in the supply of automobiles.