Consider a Closed Economy (With No Foreign Trade) The Government's Deficit (Surplus) Was
A)R30 Billion Surplus

question 44

Multiple Choice

Consider a closed economy (with no foreign trade) .Assuming the economy was in equilibrium, use the following information to determine the government's budget deficit or surplus. $\begin{array}{ll}\text { Consumption Spending } & € 350 \text { billion } \\\text { Net Taxes } & \text { R270 billion } \\\text { Household Saving } & \text { R250 billion } \\\text { Investment Spending } & \text { R220 billion }\end{array}$ The government's deficit (surplus) was

• A)R30 billion surplus.
• B)R20 billion surplus.
• C)R30 billion deficit.
• D)R50 billion deficit.

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Definitions:

Accretionary Prism

A wedge-shaped mass of sediment and rock scraped off the top of a downgoing tectonic plate at a convergent plate boundary, often leading to the formation of new land.

Volcanic Mountain Belt

A region typically found at convergent plate boundaries, characterized by a series of volcanoes formed from the melting of subducted lithosphere.

Crustal Extension

The process by which the Earth's crust is stretched and thinned, often associated with the formation of rift valleys and basins.

Mesozoic

An era of geological time from about 252 to 66 million years ago, known for the rise of dinosaurs and significant volcanic activity.