Suppose that in 2020 the average citizen's federal tax bill is $14,888 per person,and total federal spending is $13,997 per person.In 2020,the federal government will have
A)a per person budget surplus of $891.
B)a per person budget deficit of $891.
C)horizontal equity.
D)vertical equity.

Question

Quizplus · Accepted Answer

A budget deficit occurs when spending exceeds revenue. In this case, total federal spending per person is $13,997 and the average citizen's federal tax bill is $14,888 per person. This means that there is a per person budget deficit of $891 ($14,888 - $13,997 = $891). Therefore, the correct answer is B.

Suppose That in 2020 the Average Citizen's Federal Tax Bill