When federal government spending amounts to less than tax revenues, the federal government runs a budget deficit.

A discount bond is a bond

A) with no coupon payments. B) where the price of the bond is greater than its face value. C) where the interest rate is zero. D) where the face value is zero. E) that never matures.

Total net benefits gained in a market

a. minus any side payments equals total revenue from producing the good (or, equivalently, total expenditure on the good) b. is the sum of producer and consumer surplus in that market c. is the difference between consumer surplus and producer surplus in that market d. are maximized when the market price equals zero e. always exceeds the sum of total expenditure on the good and the total cost of providing it