If government spending equals tax revenue, the government has
A. a surplus of zero, but possibly a deficit as well.
B. either a surplus of zero or a deficit of zero.
C. neither a surplus of zero or a deficit of zero.
D. both a surplus of zero and a deficit of zero.
D. both a surplus of zero and a deficit of zero.
You might also like to view...
If the marginal propensity to save (MPS) is 0.50, the value of the spending multiplier is:
a. 1. b. 2. c. 4. d. 9.
Opponents of free trade often want the United States to prohibit the import of goods made in overseas factories that pay wages below the U.S. minimum wage. Prohibiting such goods is likely to
a. cause these factories to pay the U.S. minimum wage. b. increase the rate of technological advance in poor countries so that they can afford to pay higher wages. c. increase poverty in poor countries and benefit U.S. firms which compete with these imports. d. harm U.S. firms which compete with these imports.