If a Federal Budget in Which Expenditures Exceed Revenue Is

question 52

Multiple Choice

If a federal budget in which expenditures exceed revenue is enacted, the federal government will

• A)raise taxes.
• B)raise taxes and cut spending.
• C)cut spending.
• D)sell off assets.
• E)borrow money from the private sector.

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Definitions:

Profit and Loss Statement

A financial document summarizing the revenues, costs, and expenses incurred during a specific period, typically a fiscal quarter or year.

Income Statement

A financial document that reports a company’s revenues, expenses, and profits over a specific period.

Statement of Changes

A financial document detailing how an entity's equity has changed over a period of time due to various business activities.

Cash Flows

The total amount of money being transferred into and out of a business, especially as affecting liquidity.