The Following Budget Information Is for a Hypothetical Economy

question 176

Multiple Choice

The following budget information is for a hypothetical economy.All data are in billions of dollars. Refer to the above data.The budget deficit in year 3 is:

• A)$175 billion.
• B)$3050 billion.
• C)$100 billion.
• D)$295 billion.

---

Definitions:

Current Ratio

A financial ratio that evaluates a firm's capacity to meet its short-term liabilities, which are due within a year.

Current Assets

Resources anticipated to be turned into cash, disposed of, or used up within a year or during the standard operational cycle of the company.

Current Liabilities

Short-term financial obligations that are due within one year or within a company's operating cycle.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health and efficiency.