When the federal government is running a budget deficit,
a. government revenues exceed government expenditures.
b. government expenditures exceed government revenues.
c. the economy must be in an economic recession.
d. the size of the national debt will decline.
B
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If a firm wants to finance a new project, it can obtain financing by
A) using its retained earnings. B) issuing and selling new shares of stock. C) selling corporate bonds to the public. D) all of the above.
Under the fixed rate regime foreign countries could hold their dollar exchange rates constant by
A) using tight monetary policy. B) using expansionary fiscal policy. C) negotiating with the central bank of the United States. D) setting their domestic interest rate equal to the U.S. interest rate. E) holding their exchange rates constantly pegged to the euro and yen.