In Examining the National Income Accounts of the Closed Economy

question 17

Multiple Choice

In examining the national income accounts of the closed economy of Nepotocracy you see that this year it had taxes of $100 billion,transfers of $20 billion,and government purchases of goods and services of $70 billion.You also notice that last year it had private saving of $70 billion and investment of $50 billion.In which year did Nepotocracy have a budget deficit of $20 billion?

• A)this year and last year
• B)this year but not last year
• C)last year but not this year
• D)neither this year nor last year

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Definitions:

Chose in Action

A personal right to something not in the holder's possession but recoverable through legal action.

Garnisheeing Order

A garnisheeing order is a legal directive to a third party, typically a bank, to seize or withhold money belonging to a debtor for the purpose of satisfying a judgment against the debtor.

General Security Agreement

A document that provides a lender a security interest in a range of assets of the borrower, serving as collateral for securing loan repayments.

Division 1 Proposal

A formal arrangement under bankruptcy law allowing a debtor to pay creditors over time or compromise on debts.