If the Net Public Debt Expanded Last Year, Then Which

question 140

Multiple Choice

If the net public debt expanded last year, then which of the following most likely occurred during the year?

• A) The government's budget was balanced.
• B) The government experienced a budget surplus.
• C) The government experienced a budget deficit.
• D) The government's tax collections exceeded its spending.

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Definitions:

Social Optimum

The ideal state of allocation of resources where social welfare is maximized, taking into account all costs and benefits to society.

Fire Extinguishers

Fire extinguishers are active fire protection devices used to extinguish or control small fires, often in emergency situations.

Subsidized

Financial support provided by the government or other institutions to reduce the cost of services or commodities.

Tax

Compulsory financial charges or levies imposed by a government on individuals or entities to fund public spending and government operations.