Consider the Federal Government's Budget Constraint

question 89

Multiple Choice

Consider the federal government's budget constraint.If the government's total budget deficit is $27 billion and its debt-service payments are $29 billion,then its

• A)primary budget deficit is $2 billion.
• B)primary budget deficit is $56 billion.
• C)primary budget surplus is $2 billion.
• D)primary budget surplus is $56 billion.
• E)Not enough information to determine.

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Definitions:

Accounts Receivable

Represents the money owed to a business by its customers for goods or services delivered but not yet paid for.

Accounts Receivable

Accounts Receivable represents the money owed to a company by its customers for goods or services delivered but not yet paid for.

Sales Revenue

The income that a company receives from its normal business activities, usually from the sale of goods and services to customers.

Accounts Payable

Liabilities to creditors, representing amounts the company owes for goods and services it has received but not yet paid for.