Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

If in a financial year, a government's expenditure on goods and services amounts to $200 billion, the amount it spent on social security benefits equals

If in a financial year, a government's expenditure on goods and services amounts to $200 billion, the amount it spent on social security benefits equals $150 billion, and the revenue it collected from taxes is equal to 300 billion, then which of the following statements is true? (2 points) The government is running a budget surplus. The national debt will remain unaffected. The government will have to borrow money to finance its deficit. The government's revenue equals its expenditure. The government will not have to pay interest on borrowed funds

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Microeconomics

Authors: Paul Krugman, Robin Wells

3rd edition

978-1429283427, 1429283424, 978-1464104213, 1464104212, 978-1429283434

More Books

Students also viewed these Economics questions

Question

What reward will you give yourself when you achieve this?

Answered: 1 week ago