Scenario 4-1
In a given year, country A exported $12 million worth of goods to country B and $6 million worth of goods to country C; country B exported $4 million worth of goods to country A and $7 million worth of goods to country C; and country C exported $5 million worth of goods to country A and $2 million worth of goods to country B.
-When the government's spending is less than tax revenue, it implies that:
A)the government budget is balanced.
B)the government is running a deficit.
C)there is a budget surplus.
D)there is a higher chance of default by the government.
E)the government needs to borrow from the central bank.

Question

Quizplus · Accepted Answer

The scenario does not provide any information about the government's spending and tax revenue. Therefore, none of the options provided are the correct answer.

Scenario 4-1 In a Given Year, Country a Exported $12 Million Worth