According to the Government's Budget Constraint,if the Government Spends More

question 50

Multiple Choice

According to the government's budget constraint,if the government spends more than it generates in taxes,it can raise revenues by:

• A)printing money.
• B)increasing its debt.
• C)lowering interest rates.
• D)privatization.
• E)a and b

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Definitions:

Liability

A financial obligation or amount owed by a business or individual, arising from past transactions or events.

Asset

An item of value owned by an individual or corporation, expected to provide future benefits or value.

Stockholders' Equity

Stockholders' Equity represents the ownership interest of shareholders in the net assets of a company, calculated as the difference between total assets and total liabilities.

Revenues

Revenues represent the income earned by a business from its normal operations, such as sales of goods or services, before any expenses are deducted.