A budget deficit is the result of Question 9 options Governm

A budget deficit is the result of:

Question 9 options:

Government tax revenues exceed government spending.

Government transfers exceeds tax revenues.

Government spending exceeds tax revenues.

Government tax revenues exceed government transfers.

Save

Question 10 (3 points)

The government has positive savings when:

Question 10 options:

Borrows by selling bonds.

Has a budget deficit.

It has a balanced budget.

Has a budget surplus.

Save

Solution

Question 9: c. Government spending exceeds tax revenues.
(Government budget is balanced when its spending equals the tax revenues. Government budget is in surplus when tax revenues received by the government exceeds the spending and government budget is in deficit when its spending exceeds the tax revenue.)

Question 10: d. Has a budget surplus.
(Positiv esavings means that revenue of government is greater than its spending so that it is able to save and when revenue exceeds spending then the budget is said to be in surplus.)