UNIT 05 / LONG-RUN CONSEQUENCES OF STABILIZATION POLICIES

Government Deficits and the National Debt5.4 test

100 questions with explanations after each answer.

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QUESTION 01 / 100Easy

Which of the following best defines a government budget deficit?

Select one answerAGovernment purchases equal transfer payments while tax revenues remain unchangedBGovernment purchases plus transfer payments exceed tax revenues during a given yearCInterest payments on accumulated debt exceed government purchases during a given yearDTax revenues exceed government purchases plus transfer payments during a given yearEThe national debt is larger at the end of the year than the country's annual tax revenue

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Question 1