A budget deficit occurs if government spending:
A. Equals tax revenues.
B. Is greater than tax revenues.
C. Is less than tax revenues.
D. Causes tax revenues to increase.
B. Is greater than tax revenues.
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If the social marginal cost of a good is very high relative to the private marginal cost, then a monopoly will most likely
A) produce more than the social optimum. B) produce less than the social optimum. C) produce the social optimum. D) produce zero pollution.
When a firm is no longer able to reduce its long-run average cost by expanding, it has achieved its minimum efficient scale of production
a. True b. False
A decrease in the wage rate causes the budget line to
a. become flatter. b. become steeper. c. shift upward. d. shift downward.