Question: Please state which of the options is the correct answer and explain why this is. Additionally, please fully also explain why the other answers are

Please state which of the options is the correct answer and explain why this is. Additionally, please fully also explain why the other answers are incorrect. (If the reasoning for the correct answer and incorrect answers are not adequately provided, your answer will be sent back to coursehero). Thank you.

Please state which of the options is the correct answer and explain

In a recession, the actual primary deficit will: O a. Decrease, since there is a rise in income, which increases tax revenue; O b. Decrease, since there is a fall in income, which reduces tax revenue; O c. Increase, since there is a drop in income, which reduces tax revenue; O d. None of the other options; O e. Increase, since there is a rise in income, which increases tax revenue

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!