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Suppose That the Government of Summerfield Spends $2 Trillion in 2013

Question 6

Multiple Choice

Suppose that the government of Summerfield spends $2 trillion in 2013 and receives tax revenues of $1.5 trillion. Which of the following is true?


A) Summerfield has a budget surplus of $0.5 trillion.
B) Summerfield has a budget deficit of $0.5 trillion.
C) Summerfield has a trade deficit of $0.5 trillion.
D) Summerfield has a trade surplus of $0.5 trillion.

Correct Answer:

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