How does an increase in government spending without a change in taxes typically affect the national debt? A. The national debt decreases because government spending stimulates the economy. B. The national debt remains unchanged because the increase in spending is offset by economic growth. C. The national debt increases because government spending exceeds tax revenues. D. The national debt fluctuates unpredictably due to the complex nature of economic variables.
How does an increase in government spending without a change in taxes typically affect the national debt? A. The national debt decreases because government spending stimulates the economy. B. The national debt remains unchanged because the increase in spending is offset by economic growth. C. The national debt increases because government spending exceeds tax revenues. D. The national debt fluctuates unpredictably due to the complex nature of economic variables.
Chapter24: Fiscal Policy
Section: Chapter Questions
Problem 3P
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