As part of the response to the Covid-19 virus, the Federal government passed a 2 Trillion-dollar bill. This increase in spending must result in which of the following? lower future taxes higher government spending some combination of lower future government spending and higher future taxes all available are true two of the available are true

As, the Federal government passes a 2 trillion bill, as a response for Covid-19 pandemic. It does so, to ensure better health and facilities for its citizen. This will result to an increase in current government spending, thus, option (b) is correct. To make up for this increase in spending the income taxes for people will rise in future so that the government can generate more revenue accompanied with a decrease in government spending; so that this 2 trillion bill can be covered. Thus, the correct option is option (e) that two of the available options are correct; those are: higher government spending and some combination of lower future government spending and higher future taxes.

Answered: As part of the response to the Covid-19…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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As part of the response to the Covid-19 virus, the Federal government passed a 2 Trillion-dollar bill. This increase in spending must result in which of the following?

		lower future taxes
		higher government spending
		some combination of lower future government spending and higher future taxes
		all available are true
		two of the available are true

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