If a Government Must Run a Balanced Budget, Then Tax

question 21

Multiple Choice

If a government must run a balanced budget, then tax revenues and government spending:

• A) move roughly in opposite directions.
• B) move exactly in opposite directions.
• C) move exactly in the same direction.
• D) move roughly in the same direction.

---

Definitions:

"Axis of Evil"

A term coined by U.S. President George W. Bush to describe governments that he believed sponsored terrorism and sought weapons of mass destruction, notably Iran, Iraq, and North Korea.

France

A country in Western Europe known for its rich history, cultural landmarks such as the Eiffel Tower, and significant contributions to art, science, and philosophy.

Iraq

A country in Western Asia, bordered by Turkey, Iran, Kuwait, Saudi Arabia, Jordan, and Syria, notable for its ancient Mesopotamian heritage and rich reserves of oil.

North Korea

An East Asian country officially known as the Democratic People's Republic of Korea, known for its totalitarian regime, dynastic leadership, and isolation from much of the international community.