If Net Taxes Exceed Government Expenditures, the Government Sector Has

question 53

Multiple Choice

If net taxes exceed government expenditures, the government sector has a budget _______ and government saving is _______.

• A)deficit; positive
• B)deficit; negative
• C)surplus; negative
• D)balance that is zero; zero
• E)surplus; positive

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Definitions:

Maturity

The date on which a financial obligation or investment becomes due for payment.

Face Value

The nominal value stated on financial instruments, such as bonds or stock certificates, representing the amount to be repaid at maturity.

Contract Rate

The predetermined price per unit of service or good agreed upon in a contractual agreement.

Market Rate

The prevailing rate of interest or value for currencies or goods in the marketplace, often influenced by supply and demand.