The sum of public spending on goods and services and transfer payments during a given period cannot exceed tax revenues plus borrowed funds. This is the statement for

Question

Quizplus · Accepted Answer

The statement refers to the government budget constraint, which states that the sum of public spending and transfer payments must be financed by tax revenues and borrowing. This constraint applies to all forms of taxation, including ad valorem, excise, and sales taxes. Therefore, the correct answer is D.

The Sum of Public Spending on Goods and Services and Transfer