If net taxes exceed government expenditures, the government sector has a budget ________ and government saving is ________.
A: surplus; positive
B: surplus; negative
C: deficit; positive
D: deficit; negative
A: surplus; positive
B: surplus; negative
C: deficit; positive
D: deficit; negative
举一反三
- Current account surplus suggests there might be: A: Negative net savings of private secto B: Positive net savings of private secto C: Government deficit D: Government surplus
- An increase in the government ________ reduces the government's ________. A: budget deficit; debt B: budget surplus; debt C: debt; budget deficit D: None of the above answers is correct.
- Suppose the only revenue taken in by the government is in the form of income tax, and the tax rate is 10 percent. If aggregate income is $800 billion, and government outlays are $100 billion then the government budget has A: a deficit of $20 billion. B: a surplus of $20 billion. C: neither a surplus nor a deficit. D: a deficit of $80 billion.
- Which of the following statements is correct? A: Government should tax goods with either positive or negative externalities. B: Government should tax goods with negative externalities and subsidize goods with positive externalities. C: Government should subsidize goods with either positive or negative externalities. D: Government should tax goods with positive externalities and subsidize goods with negative externalities.
- If the government deficit rises and private saving and investment do not change much ,the current account surplus must fall by roughly the same account as the increase in the fiscal deficit.