Scenario 26-1

question 49

Multiple Choice

Scenario 26-1.Assume the following information for an imaginary,closed economy.
GDP = $100,000;taxes = $22,000;government purchases = $25,000;national
saving = $15,000.
-Refer to Scenario 26-1.This economy's government is running a

• A)budget surplus of $3,000.
• B)budget surplus of $12,000.
• C)budget deficit of $3,000.
• D)budget deficit of $12,000.

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Definitions:

Real Options

Real options are a type of financial option that deals with tangible assets, providing the right but not the obligation to undertake certain business decisions, like expanding or discontinuing a project.

Global Financial Crisis

A worldwide period of economic difficulty experienced by markets and consumers. A significant financial downturn that began in 2007-2008.

Federal Deficits

The amount by which a government's expenditures exceed its tax revenues over a specified fiscal period at the federal level.

U.S. GDP

The total market value of all final goods and services produced within the United States in a given time period, serving as a broad measure of the nation's overall economic activity.