When the government's expenditures exceed its revenues...

What will be an ideal response?


-it needs to borrow
-it incurs a budget deficit
-the federal government debt increases

Economics

You might also like to view...

Items that are purchased by individuals for their own enjoyment are called

A) consumption goods and services. B) capital goods. C) government goods and services. D) exports of goods and services. E) private goods.

Economics

Strictly followed, the single-payer model requires a ban on private insurance for all covered medical services. Which country follows this model most closely?

a. Canada b. Germany c. United Kingdom d. France e. Switzerland

Economics

Exhibit 2-14 Production possibilities curve In Exhibit 2-14, which of the following explains this economy's movement from point E to point F?

A. The rate of unemployment in this economy would have increased. B. Consumption goods production has increased, but capital goods production has decreased. C. The economy has decreased unemployment, but some degree of unemployment still exists D. The economy has achieved full employment.

Economics

The United States is a leading exporter of wheat. What explains the source of the comparative advantage of the United States in wheat production?

A) positive externalities B) investment by multinational firms such as Archer-Daniels-Midland and Tyson Foods Inc. C) climate and soil conditions in the United States which are well-suited for wheat production D) a large supply of unskilled labor

Economics