A rise in government spending on large infrastructure projects, such as anew high speed railway line, would be most likely toA increase the budget deficit.increase the budget surplus.reduce the balance of payments deficit.increase the balance of payments deficit.BCD

Government spending refers to the aggregate sum of money that a government distributes and uses to…

spending large new high speed railway line, would be most likely to A increase the budget deficit. B increase the budget surplus. C reduce the balance of payments deficit. D increase the balance of payments deficit.

spending large new high speed railway line, would be most likely to A increase the budget deficit. B increase the budget surplus. C reduce the balance of payments deficit. D increase the balance of payments deficit.

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter11: Managing Aggregate Demand: Fiscal Policy

Section11.B: Algebraic Treatment Of Taxes And Fiscal Policy

Problem 3TY

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Question

A rise in government spending on large infrastructure projects, such as a
new high speed railway line, would be most likely to
A increase the budget deficit.
increase the budget surplus.
reduce the balance of payments deficit.
increase the balance of payments deficit.
B
C
D

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