Question

The mayor of your hometown has said she will request that the federal government extend a nearby interstate highway so that it passes by the city, stimulating economic growth. However, the federal government is reluctant to do this because it is currently running a budget deficit. If the interstate was extended at a cost of $35 million, what would be the impact of this outlay on the federal government’s budget? Choose one or more: A. an increase in discretionary spending and, if no other changes are made, an increase in the government’s deficit B. an increase in mandatory spending and, if no other changes are made, an increase in the government’s deficit C. a decrease in discretionary spending and, if no other changes are made, an increase in the government’s deficit D. a decrease in mandatory spending and, if no other changes are made, an increase in the government’s deficit E. an increase in the government’s debt

Answer 1

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.