When the government's expenditures exceed its tax revenues, the budget
A) has a deficit and the national debt is increasing.
B) has a surplus and the national debt is increasing.
C) is balanced and the national debt is increasing.
D) has a deficit and the national debt is decreasing.
E) None of the above because by law the government's expenditures cannot exceed its tax revenue.
A
You might also like to view...
A trade surplus occurs when a country:
A. imports more than it exports. B. imports less than it exports. C. has a negative balance of trade. D. has a zero balance of trade.
An increase in nonlabor input costs will: a. Increase SRAS
b. Decrease SRAS. c. Decrease LRAS. d. Both b. and c.
When we talk about injections in the classical model, we refer to
a. taxes b. total government purchases. c. federal government purchases only. d. state government purchases only. e. local government purchases only.
Which of the following observations concerning the absolute definition of poverty is true?
a. It is based on average income. b. It is an optimistic definition. c. It is not arbitrary in nature. d. It is a cultural definition.