If Government Has No Debt Initially but Then Annual Revenues

question 21

Multiple Choice

If government has no debt initially but then annual revenues are $8 billion for 10 years while annual expenditures are $11 billion for 10 years, then the government has a:

• A)deficit of $3 billion per year and a debt of $30 billion.
• B)surplus of $3 billion per year and a debt of $30 billion.
• C)deficit of $30 billion and a debt of $3 billion per year.
• D)surplus of $30 billion and a debt of $3 billion per year.

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Definitions:

Influences

Forces or factors that have an effect on the behavior, opinions, or development of someone or something.

Sleeper Effect

A delayed increase in the impact of a message that occurs when an initially discounted message becomes effective, as the reason for discounting it is forgotten.

Phenomenon

An observable event or fact, especially one that is significant, unusual, or extraordinary.

Message

is a piece of information or communication conveyed from one person to another, either verbally, written, or through another medium.