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When tax revenue exceeds the​ government outlays, the budget:
 
(i) is balanced and the national debt is decreasing.
(ii) has a surplus and the national debt is increasing.
(iii) has a surplus and the national debt is decreasing.
(iv) has a deficit and the national debt is increasing.
(v) None of the above because by law tax revenue cannot exceed the​ government's expenditures. 

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Sixta Kovacek
Sixta KovacekLv2
17 Feb 2020
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25 Jun 2020

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Related questions

5 Multiple choice questions... please answer all of them.

15. The accumulation of years of spending more money than is collected in revenues over several years creates a budget (5 points)
debt
deficit
surplus
reversal
16. How does the U.S. government promote economic growth? (5 points)
By decreasing taxes and decreasing spending
By decreasing taxes and increasing spending
By increasing taxes and decreasing spending
By increasing taxes and increasing spending
17. The country of Lilliput has low unemployment and high consumer spending, and small businesses are thriving. However, prices are starting to rise throughout the economy. What should Lilliput's government do to prevent inflation from happening? (5 points)
Lower the income tax, which gives citizens less money to spend, and buy services from civilian-owned businesses, which creates more jobs.
Lower the income tax, which gives citizens more money to spend, and buy more services from civilian-owned businesses, which creates more jobs.
Raise the income tax, which gives citizens less money to spend, and stop buying services from civilian-owned businesses, which eliminates jobs.
Raise the income tax, which gives citizens less money to spend, and buy more services from civilian-owned businesses, which creates more jobs.
18. The government increases taxes. What might be a reason for this change in fiscal policy? (5 points)
A deficit due to improving nationwide public transportation
A deficit due to more monies flowing in from investors
A surplus due to greater amounts of income from exports
A surplus due to more government spending on building roads
19. Which of these is required to balance the budget for the year? (5 points)
Revenue equal to spending
Revenue greater than spending
Revenue less than spending
No national debt

27.Individuals with low incomes probably

a. pay no Social Security tax

b. pay more Social Security tax than income tax

c. pay less Social Security tax than personal income tax

d. pay no taxes at all

e. are avoiding most of their tax payments

28. Which of the following is true?

a. The federal budget deficit is a flow and so is the national debt.

b. The national debt is both a stock and a flow.

c. The federal budget deficit is a stock and the national debt is a flow.

d. The federal budget deficit is a flow and the national debt is a stock.

e. The federal budget deficit is stock and so is the national debt.

30. When the U.S. government runs a deficit, it usually does the following:

a. it buys government bonds from the public

b. it asks the Treasury Department to print money to pay for the deficit

c. it sells new government bonds to the public

d. it borrows money directly from the Federal Reserve

e. it asks the Federal Reserve to print money to pay for the deficit

32. Under what condition can the U.S. government continue to pay interest on a rising debt without eventually needing to increase the average tax rate?

a. if the national debt grows at the same rate as nominal GDP

b. if the nominal interest on the national debt grows faster than nominal GDP

c. if the total interest payments on the national debt grow faster than nominal GDP

d. if the national debt grows faster than nominal GDP

e. if the real interest on the national debt grows faster than real GDP

34.The national debt

a. will be zero when the federal budget is balanced.

b. has been shrinking in the last 30 years.

c. is equal to the government’s budget deficit.

d. can grow without negative economic effects.

36.In the long run,

a. an increase in the federal budget deficit can lower the interest rate and investment spending.

b. an increase in the federal budget deficit can raise the interest rate and investment spending.

c. a decrease in the federal budget deficit can lower the interest rate and raise investment spending.

d. a decrease in the federal budget deficit can raise the interest rate and lower investment spending.

44. If the Fed conducts open market purchases (of bonds), we should expect to see the money supply

a. decrease, the interest rate increase, autonomous consumption decrease, business investment decrease, and real GDP decrease

b. increase, the interest rate decrease, autonomous consumption decrease, business investment decrease, and real GDP decrease

c. increase, the interest rate decrease, autonomous consumption increase, business investment increase, and real GDP increase

d. decrease, the interest rate decrease, autonomous consumption increase, business investment increase, and real GDP decrease

e. decrease, the interest rate increase, autonomous consumption increase, business investment increase, and real GDP increase

48. In the classical model the interest rate is determined in the money market; in the short-run macro model, the interest rate is determined in the market for loanable funds.

a. true

b. false

Which statement best summarizes how Reagan’s economic policies affected the US economy? 
 
(i) There was overall prosperity, but federal spending and the national debt also increased.
(ii) There was a decline in unemployment, but people made less money and paid higher taxes. 
(iii) There was a significant rise in prosperity triggered by a reduction in federal spending and the national debt. 
(iv) There was an increase in defense spending because of tax increases and the elimination of the national debt. 
 

 

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