When the government's expenditures exceed its tax revenue, the budget
A) has a deficit and the national debt is increasing.
B) is balanced and the national debt is increasing.
C) has a surplus and the national debt is increasing.
D) has a deficit and the national debt is decreasing.
E) None of the above because by law the government's expenditures cannot exceed its tax revenue.
A
You might also like to view...
The prices of several essential goods in Agraria almost doubled over the last decade. In order to satisfy the voters, the government of Agraria introduced price controls. What is likely to happen after the introduction of these price controls?
What will be an ideal response?
Of the three levels of government in the United States,
a. only the federal government provides public goods b. only the federal government has the power to tax c. local governments are primarily responsible for primary and secondary education d. the federal government is primarily responsible for higher education e. state governments are primarily responsible for economic stability