In the current year, a nation's government spending equals $1.5 trillion and its revenues are $1.9 trillion. Which of the following is true?
A) The nation's national debt equals $0.4 trillion.
B) This nation has a current year budget surplus of $0.4 trillion.
C) This nation is currently running a budget deficit of $0.4 trillion.
D) The nation has a current year trade surplus of $0.4 trillion.

Question

Quizplus · Accepted Answer

The nation has a budget surplus because its revenues ($1.9 trillion) exceed its spending ($1.5 trillion) by $0.4 trillion.

In the Current Year, a Nation's Government Spending Equals $1