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Suppose Government Spending Equals $500 Billion,tax Revenue Equals $450 Billion,and

Question 161

Multiple Choice

Suppose government spending equals $500 billion,tax revenue equals $450 billion,and the Treasury issues $50 billion in bonds.In this case the government has


A) a budget surplus of $100 billion.
B) a balanced budget.
C) a budget deficit of $50 billion.
D) a budget deficit of $100 billion.
E) a budget surplus of $50 billion.

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