Suppose the Only Revenue Taken in by the Government Is

question 246

Multiple Choice

Suppose the only revenue taken in by the government is in the form of income tax, and the tax rate is 10 percent. If aggregate income is $800 billion, and government outlays are $100 billion then the government budget has

• A) neither a surplus nor a deficit.
• B) a deficit of $80 billion.
• C) a deficit of $20 billion.
• D) a surplus of $20 billion.

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Definitions:

Grammar

The set of structural rules governing the composition of clauses, phrases, and words in any given natural language.

Morphemes

The smallest grammatical units of language that have semantic meaning, including roots, prefixes, and suffixes.

Semantics

The branch of linguistics and logic concerned with meaning, including the relations between signifiers like words, phrases, signs, and symbols and what they stand for.

Morphemes

The smallest units of language that carry meaning, including words, prefixes, and suffixes.