Government Officials of Country Z Estimate That Next Year's Public

question 16

Multiple Choice

Government officials of Country Z estimate that next year's public programs will cost $19 million but that tax revenues will be only $15 million.The officials could avoid a deficit next year by adopting which of the following fiscal strategies?

• A)Reduce the cost of public programs by $4 million.
• B)Increase taxes by $4 million.
• C)Borrow $4 million by issuing new government bonds.
• D)All of these strategies will avoid a deficit.

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Definitions:

Median

The middle value in a data set when the values are arranged in ascending or descending order.

Range

The simplest measure of variability is the range, which is calculated by subtracting the lowest score from the highest score and adding 1.

Normal Curve

A symmetrical bell-shaped curve representing a normal distribution in statistics, where the mean, median, and mode are equal.

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values from the mean.