If We Want to Know Whether Tax Revenues Are Sufficient

question 30

Multiple Choice

If we want to know whether tax revenues are sufficient to finance the discretionary part of government expenditure,which of the following measures should we analyze?

• A)the cyclically adjusted deficit/surplus
• B)the government's budget constraint
• C)the debt-to-GDP ratio
• D)the government's primary deficit/surplus
• E)the interest rate on government bonds compared to the growth rate of real GDP