In the Current Year, a Nation's Government Spending Equals $15

question 41

Multiple Choice

In the current year, a nation's government spending equals $15 trillion and its revenues are $20 trillion. Which of the following is TRUE?

• A)The nation's national debt equals $5 trillion.
• B)This nation has a current year budget surplus of $5 trillion.
• C)This nation is currently running a budget deficit of $5 trillion.
• D)The nation has a current year trade surplus of $5 trillion.

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Definitions:

Indifference Curve

An indifference curve represents a set of combinations of goods and services among which a consumer is indifferent, reflecting preferences and trade-offs.

Budget Line

A graphical representation of all possible combinations of two goods that a consumer can afford given their income and the prices of the goods.

Money Income

The total earnings received by an individual or household in the form of wages, salaries, benefits, and other monetary sources before any deductions.