During an expansion, unemployment insurance A)decreases the size of the budget d

Question

During an expansion, unemployment insurance

A)decreases the size of the budget deficit through a decrease in government consumption of goods and services.

B)decreases the size of the budget deficit through an increase in transfer payments only.

C)decreases the size of the budget deficit through a decrease in taxation only.

D)decreases the size of the budget deficit through a decrease in transfer payments

E)increases the size of the budget deficit through both an decrease in taxation and a increase in transfer payments

Explanation / Answer

E) increases the size of the budget deficit through both an decrease in taxation and a increase in transfer payments.

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