Which of the Following Is Correct with Regard to Budget

question 94

Short Answer

Which of the following is correct with regard to budget deficits and the national debt?
Canada's national debt is the amount of money Canada owes the United States.
A budget deficit occurs when income tax revenue is less than interest payments on the national debt.
A budget deficit occurs when government expenditures in a given year exceed government revenues.
There is no relationship between annual budget deficits and the total national debt.
The national debt is more important than annual budget deficits.

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Definitions:

Proprietor's Income

The income earned by the owners of unincorporated businesses for their labor and capital investment.

Salary

A fixed regular payment, usually expressed as an annual sum, made by an employer to an employee, especially a professional or white-collar worker.

Economic Forecasts

Predictions about future economic activity, including growth rates, inflation, and labor market conditions, based on current and historical data.

In-kind Transfer

In-kind transfers are non-cash distributions of goods or services from governments or organizations to individuals, aimed at assisting with basic needs such as food and housing.