The state government collects $400 billion in tax revenue during the current fiscal year and spends $415 billion. Which of the following is true?

	a.	The government is running a cash flow surplus.
	b.	The national debt will decrease by about $15 billion.
	c.	The government will cut taxes to cover this shortfall.
	d.	The national debt will increase.

Assume a convex utility function with an interior solution in which a consumer chooses some of each good. Which of the following is NOT represented by the slope of the budget constraint at optimal consumption?

	a.	marginal rate of substitution
	b.	relative price of one good (drawn on horizontal axis) in terms of other good (drawn on vertical axis)
	c.	relative price of one good (drawn on vertical axis) in terms of other good (drawn on horizontal axis)
	d.	ratio of the marginal utilities