If tax revenues are $230 billion and the government's outlays are $235 billion, then the budget
A) deficit is $5 billion and government debt will remain the same.
B) deficit is $5 billion and government debt will decrease by $5 billion.
C) surplus is $230 billion and the budget deficit is $235 billion.
D) surplus is $5 billion and government debt will increase by $5 billion.
E) deficit is $5 billion and government debt will increase by $5 billion.
Correct Answer:
Verified
Q2: The greater the tax wedge, the--------------------the amount
Q3: A reason why discretionary fiscal policy might
Q4: Increasing the income tax rate--------------------the--------------------
A)decreases; supply of
Q5: Q6: The national debt is the amount Q7: The standard view in economics is that Q8: The national debt can only be reduced Q9: Discretionary fiscal policy is handicapped by Q10: If the government uses fiscal policy to Q11: 
A)by which
A)law-making time
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