If the government has no debt initially, but then has annual revenues of $10 billion per year for 4 years and annual expenditures of $10.5 billion per year for 4 years, then the government has
A) a budget surplus of $0.5 billion per year and a debt of $2 billion at the end of the 4 years.
B) a budget deficit of $0.5 billion per year and a debt of $2 billion at the end of the 4 years.
C) a budget surplus of $0.5 billion per year and a surplus of $2 billion at the end of the 4 years.
D) a budget deficit of $0.5 billion per year and a budget surplus of $2 billion at the end of the 4 years.
B
You might also like to view...
Which of the following is a good example of efficient specialization and voluntary exchange?
A. A college professor hires someone to rototill his or her garden to ready it for spring planting. B. A college professor works on the engine of a car for a neighbor who is a mechanic. C. A lawyer decides to babysit his or her young child and agrees to do so for others for cash. D. A physician agrees to help a neighbor work on his or her income tax return in exchange for his or her bookkeeping services.
Refer to the above figure. What can we say about economic rent?
A. Economic rent equals the area IJK0. B. Economic rent equals the area HJI. C. Economic rent equals the area HJK0. D. There is no economic rent represented in the figure.