Question 36 (1 point)

What is net tax revenue in excess of government spending on goods and services called?

Question 36 options:

a)	A budget surplus.

b)	Transfer payments.

c)	A budget deficit.

d)	Gross tax revenue.

Question 37 (1 point)

What is government spending on goods and services in excess of net tax revenue called?

Question 37 options:

a)	Monetizing the debt.

b)	A budget surplus.

c)	A budget deficit.

d)	Pro-cyclical fiscal policy.

Question 38 (1 point)

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Which of the following statements is correct regarding an interest rate above equilibrium?

Question 38 options:

a)	It will result in a shortage of money in the money market.

b)	It is the normal state of affairs.

c)	It will result in a surplus of money in the money market.

d)	It is a result of people demanding too much money.

Question 39 (1 point)

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How is the equilibrium rate of interest in the money market determined?

Question 39 options:

a)	By the intersection of the supply of money and the asset demand for money.

b)	By the intersection of the supply of money and the total demand for money.

c)	By the intersection of aggregate expenditures and the total demand for money.

d)	By the intersection of the supply of money and the transactions demand for money.

Question 40 (1 point)

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Bank rate serves as the basis for establishing the chartered banks' prime interest rates.

Question 40 options:

	a) True
	b) False

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