In 2014, the federal government of Happy Isle had tax revenues of $1 million, and spent $500,000 on transfer payments, $250,000 on goods and services and $300,000 on debt interest. In 2014, the government of Happy Isle had a ________.

Question

Quizplus · Accepted Answer

The total expenditure was $1,050,000 ($500,000 + $250,000 + $300,000), which exceeds the tax revenue of $1 million, resulting in a budget deficit of $50,000.

In 2014, the Federal Government of Happy Isle Had Tax