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Government Officials of Country Z Estimate That Next Year's Public

Question 25

Multiple Choice

Government officials of Country Z estimate that next year's public programs will cost $19 million but that tax revenues will be only $15 million. Which of the following statements is false?


A) Country Z's tax system is sufficient.
B) Country Z's government is engaging in deficit spending.
C) If Country Z must borrow $4 million to pay for its public programs, its national debt will increase by $4 million.
D) Country Z's government could balance its budget by eliminating a program that costs $4 million.

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