Consider the Government's Budget Balance

question 91

Multiple Choice

Consider the government's budget balance.Suppose G = 300 and the government's net tax revenue is equal to 0.14Y.When Y = 2000,the government is running a budget

• A)deficit of 20.
• B)surplus of 20.
• C)balance.
• D)deficit of -20.
• E)surplus of 40.