A Budget Surplus Exists When

question 339

Multiple Choice

A budget surplus exists when:

• A) taxes are greater than government spending.
• B) taxes are less than government spending.
• C) taxes are less than government spending plus investment.
• D) investment is less than government spending less taxes.

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Definitions:

Buy Signal

An indication or signal generated by a technical analysis or trading strategy that suggests it might be a favorable time to purchase a particular security or asset.

Arbitrage Activity

The practice of buying and selling equivalent assets in different markets to profit from price discrepancies.

Fundamental Risk

The risk associated with an underlying factor that affects all investments across the board, such as inflation or political instability.

Momentum Effects

The phenomenon where securities that have performed well in the past continue to perform well in the near future, and vice versa.