In the Current Year, a Nation's Government Spending Equals $1

question 90

Multiple Choice

In the current year, a nation's government spending equals $1.5 trillion and its revenues are $1.9 trillion. Which of the following is true?

• A) The nation's national debt equals $0.4 trillion.
• B) This nation has a current year budget surplus of $0.4 trillion.
• C) This nation is currently running a budget deficit of $0.4 trillion.
• D) The nation has a current year trade surplus of $0.4 trillion.

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Definitions:

Milk

A nutrient-rich liquid food produced by the mammary glands of mammals, commonly consumed by humans.

Perfectly Competitive

Refers to a market structure where many firms sell identical products, entry and exit are easy, and no single firm can influence the market price.

Airbus Industries

A major European multinational aerospace corporation known primarily for designing, manufacturing, and selling commercial aircraft worldwide.

Annual Sales

The total revenue a company generates from its business activities over the course of a year.