Author Question: If the government spends exactly what it receives in taxes during a given interval, then the result ... (Read 76 times)

mckennatimberlake · **on:** Jun 29, 2018

If the government spends exactly what it receives in taxes during a given interval, then the result is

A) a balanced budget.
B) the gross public debt.
C) the net public debt.
D) a government budget deficit.

Question 2

Suppose the price of crude oil used to produce gasoline rises significantly. At the same time, consumers purchase hybrid cars in great numbers. In the market for gasoline, the market clearing price ________ and the equilibrium quantity ________.

A) definitely falls, is indeterminate
B) is indeterminate, definitely falls
C) definitely falls, definitely rises
D) definitely rises, is indeterminate