When the government's outlays exceed its tax revenues, the national debt
A) shrinks thanks to the budget surplus.
B) grows to finance the budget deficit.
C) grows to finance the budget surplus.
D) shrinks thanks to the budget deficit.
E) does not change because it has nothing to do with government outlays and tax revenue.
B
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In the above figure, if initial equilibrium is at point A and there is a fully anticipated increase in aggregate demand from AD1 to AD2 due to an anticipated increase in the money supply, then
A) the price level will shift to P2 in the long run. B) the economy will move directly from point A to point C without passing through point B. C) the price level will shift to P2 in the short run. D) the economy will move directly from point A to point B, and will remain at point B in the long run.
Which of the following represents ownership of a firm?
A) commodities B) stocks C) bonds D) loans E) short-term securities
Firms in monopolistic competition can make an economic profit in the long run
Indicate whether the statement is true or false
_____ has the primary responsibility for developing the early stages of the government's budget
a. The executive branch b. The Treasury Department c. The House of Representatives d. The Senate