If the government uses its budget surplus to finance additional government purchases or tax cuts, crowding out will A) occur to a greater degree. B) occur more rapidly. C) not occur. D) still occur, but to a lesser degree.
If the government uses its budget surplus to finance additional government purchases or tax cuts, crowding out will A) occur to a greater degree. B) occur more rapidly. C) not occur. D) still occur, but to a lesser degree.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter30: Government Budgets And Fiscal Policy
Section: Chapter Questions
Problem 52P: If a government runs a budget deficit of 10 billion dollars each year for ten years, then a surplus...
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Please give me correct answer with full explanation; otherwise, i give multiple downvote.
Transcribed Image Text:If the government uses its budget surplus to finance additional government
purchases or tax cuts, crowding out will
A) occur to a greater degree.
B) occur more rapidly.
C) not occur.
D) still occur, but to a lesser degree.
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