If government purchases exceed taxes minus transfer payments, then the government budget is:

Name: If government purchases exceed taxes minus transfer payments, then the government budget is:
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Question

Quizplus · Accepted Answer

If government purchases exceed taxes minus transfer payments, this means that the government is spending more than its revenue. This creates a budget deficit, which is the amount by which government expenditures exceed government revenue. Therefore, the correct answer is B.

If Government Purchases Exceed Taxes Minus Transfer Payments, Then the Government