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

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Definitions:

Redistributing Land

The process of realigning or reassigning the ownership and control of land to achieve more equitable distribution among a population.

Neoliberal Globalization

A process emphasizing the global integration of economies through free-market policies, reduction of trade barriers, and increased capital flows, under the influence of neoliberal ideologies.

Democratic Globalization

The spread of democracy around the world and the integration of democratic norms and values into international relations and institutions.

Decreases Political Stability

A reduction in the ability of a governmental system to provide consistent governance and policy, often leading to uncertainty, unrest, or conflict.