Scenario 8-1. Assume the following information for an imaginary, closed economy.

-Refer to Scenario 8-1. For this economy, taxes amount to
A) $28,000.
B) $38,000.
C) $41,000.
D) $44,000.

Question

Scenario 8-1. Assume the following information for an imaginary, closed economy.
 
-Refer to Scenario 8-1. For this economy, taxes amount to
A) $28,000. 
B) $38,000. 
C) $41,000. 
D) $44,000.

Quizplus · Accepted Answer

Taxes are equal to government spending minus the budget deficit plus the increase in national debt. Using the values given, taxes are equal to $200,000 - (-$13,000) + $54,000 = $41,000.