When the Government Has a Budget Surplus

question 78

Multiple Choice

When the government has a budget surplus

• A)it buys more of its bonds from the public than it sells to the public.
• B)it spends more than it receives in tax revenue.
• C)private saving is greater than zero.
• D)exports are greater than imports.

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Definitions:

Drive-Reduction Theory

A psychological concept suggesting that motivation arises from biological needs that push organisms to seek homeostasis through reducing drives stemming from those needs.

Tension

The physical or emotional strain caused by conflicting or demanding circumstances.

Stability

The condition of being resistant to change or variation, often used in psychological contexts to refer to emotional or mental consistency.

Primary Drives

Basic, instinctual drives that motivate behaviors necessary for survival, such as hunger, thirst, and avoidance of pain.