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

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Definitions:

Communal Sharing

A relationship or interaction model based on shared resources and collective benefit.

Collective Identity

A shared sense of belonging to a group, characterized by common interests, experiences, or values.

Unity

The state of being united or joined as a whole, especially among members of a group with common interests.

Market Pricing Relationship

A theoretical relationship that determines the price of goods or services in a market based on supply and demand, competition, and other economic factors.