Answers GalliWCA 2221 CivicsEconomics 1st nine weeks 26-27 Introduction to MacroeconomicsQuestion 4

4

AssignmentMultiple Choice

Introduction to Macroeconomics

Question 4 • (Galli)WCA 2221 Civics/Economics 1st nine weeks 26-27

How might a government deficit affect the circular flow of income?

Answer

A

Taxes could be increased to fix the deficit, giving consumers more money to spend.

B

Taxes could be decreased to fix the deficit, giving consumers less money to spend.

C

Government spending could rise due to the deficit, and the economy could grow.

D

Government spending could drop due to the deficit, and the economy could slow down.

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