The Accompanying Table Gives Budget Information for a Hypothetical Economy

question 88

Multiple Choice

$$\begin{array} { | c | c | c | c | } \hline & \begin{array} { c } \text { Government } \\\text { Spending }\end{array} & \text { Tax Revenues } & \text { GDP } \\\hline \text { Year 1 } & \$ 450 & \$ 425 & \$ 2,000 \\\hline \text { Year 2 } & 500 & 450 & 3,000 \\\hline \text { Year 3 } & 600 & 500 & 4,000 \\\hline \text { Year 4 } & 640 & 620 & 5,000 \\\hline \text { Year 5 } & 680 & 580 & 4,800 \\\hline \text { Year 6 } & 600 & 620 & 5,000 \\\hline\end{array}$$ The accompanying table gives budget information for a hypothetical economy. Assume that all budget surpluses are used to pay down the public debt. The public debt declined in year

• A) 6.
• B) 5.
• C) 4.
• D) 3.

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Definitions:

Consumer Protections

Laws and regulations designed to ensure fair trade for consumers and to protect them from fraudulent and unfair business practices.

Fraud

A deliberate deception to secure unfair or unlawful gain, or to deprive a victim of a legal right.

Federal Level

Pertaining to or involving the central government of a federation rather than any of its constituent states or regions.

Used Car Sales

The activity or business of buying and selling pre-owned vehicles.