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Depending on the Relative Size of the Federal Government's Expenditures

question 96

Essay

Depending on the relative size of the federal government's expenditures and tax revenues,the federal government's budget can be in three possible conditions.What are the three possible conditions and what is the relationship of federal government expenditures and tax revenues for each?


Definitions:

Cash Dividend

A cash disbursement from a corporation to its shareholders, derived from its earnings.

Par Value

The face value of a bond or stock as stated on the certificate, which is the minimum amount the security can be sold for upon initial offering.

Stated Value

The amount per share assigned by the board of directors to no-par value stock.

Per Share Value

The financial value of a single share of a company's stock, representing a fraction of the corporation's assets and earnings per share.

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