When a government earns more than it spends in revenue, we say that it has a:
A. budget surplus.
B. budget deficit.
C. federal debt.
D. federal deficit.
A. budget surplus.
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The money supply in an economy declines when, other things equal, _____
a. government spending exceeds borrowing b. government borrowing exceeds tax revenues and there is a deficit c. government borrowing exceeds the government deficit d. government spending exceeds tax revenues e. government spending exceeds borrowing and there is a surplus
If a country has negative net capital outflows, then its net exports are
a. positive and its saving is larger than its domestic investment. b. positive and its saving is smaller than its domestic investment. c. negative and its saving is larger than its domestic investment. d. negative and its saving is smaller than its domestic investment.