A Balanced Budget Is Present When

question 105

Multiple Choice

A balanced budget is present when

• A) the economy is at full employment.
• B) the actual level of aggregate spending equals the planned level of spending.
• C) public sector spending equals private sector spending.
• D) government revenues equal government expenditures.

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Definitions:

Annual Interest Rate

The interest rate charged by lenders on loans or paid on deposits, standardized as an annual rate.

Rate of Inflation

The Rate of Inflation measures the percentage increase in the general price level of goods and services in an economy over a period of time.

Real Rate of Return

The annual percentage return realized on an investment, adjusted for changes in the price level due to inflation or other external effects.

Annual Interest Rate

The percentage of a sum of money charged for its use, calculated on an annual basis.