Question 11 2 pts (05.04 MC) Assume that in Year 1, a government's expenditure and transfer payments equal $4 billion and its revenue is $4.2 billion; and in Year 2, its expenditure and transfer payments are $5.7 billion and its revenue is $4.5 billion. Which of the following statements is true in this scenario? O The government had a balanced budget in Year 1, and it had a budget deficit in Year 2. (O The government had a budget deficit in Year 1, and it had a budget surplus in Year 2. (O The government had a budget surplus in Year 1, and it had a budget deficit in Year 2. (O The government had a budget deficit in Year 1, and it had a balanced budget in Year 2. (O The government had a budget deficit in Year 1 and Year 2. Question 12 2 pts (05.04 LC) Under which of the following scenarios does the government have to borrow money to finance its spending? (O Government purchases and transfer payments exceed tax revenues (O Positive output gap in the economy O Increase in the money supply in the economy (O Government revenue exceeds spending and transfer payments (O Decrease in the reserve requirement ratio for banks