If the Government Has a Spending Flow That Exceeds the Revenues

question 115

Multiple Choice

If the government has a spending flow that exceeds the revenues it collects, the government will run a ________ that year.

• A) debt
• B) deficit
• C) debt and a deficit
• D) surplus

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Definitions:

Demonstrative Legacy

A bequest in a will that specifies a particular asset or monetary source to fund the gift.

Probate

The legal process of administering a deceased person's estate, including the resolution of any claims and the distribution of assets under a will.

Devise

A legal term for the bequest of real estate property through a will.