The government budget constraint implies that
A. government borrowings = government spending+ transfers - taxes and user charges.
B. government spending = government borrowing - transfers - taxes and user charges
C. government spending = transfers - taxes and user charges - government borrowing.
D. government borrowings = taxes and user charges + government spending - transfers
Answer: A
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The relationship between the aggregate demand curve and the aggregate expenditures model is derived from the fact that a(n) ________.
A. decrease in the price level shifts the aggregate expenditures schedule downward and decreases equilibrium GDP B. increase in the price level shifts the aggregate expenditures schedule downward and increases equilibrium GDP C. increase in the price level shifts the aggregate expenditures schedule upward and decreases equilibrium GDP D. decrease in the price level shifts the aggregate expenditures schedule upward and increases equilibrium GDP
Payments to the factors of production are
A) rent, wages, interest, and profit or loss. B) rent, mortgage, interest, and bonds. C) rent, interest, bonds, and profit or loss. D) land, labor, capital, and entrepreneurshi
In the winter of 2001-2002, Argentina's overvalued currency reflected a(n)
a. balance of payments surplus. b. balance of payments deficit. c. surplus of exports over imports. d. excess demand for Thai currency.
In moving from a shortage toward the market equilibrium, which of the following is true?
a. Quantity supplied decreases. b. Quantity demanded increases. c. Price falls. d. Price rises.