A government budget deficit is
A) an excess of government spending over government revenues during a given time period.
B) a situation in which the government's spending is exactly equal to the total taxes and other revenues it collects during a given time period.
C) the total value of all outstanding federal government securities.
D) all federal government debt irrespective of who owns it.
Question 2
Corporate profits are taxed twice because
A) taxes are collected on profits before profits are distributed to shareholders.
B) the government wants to minimize the amount of tax paid on capital gains.
C) it is economically efficient to reduce the amount of retained earnings.
D) capital gains are not indexed to the rate of inflation.
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