Author Question: When government expenditures are greater than tax revenues A) there will be budget surplus. B) ... (Read 55 times)

mpobi80 · **on:** Jun 30, 2018

When government expenditures are greater than tax revenues

A) there will be budget surplus. B) the public debt will be reduced.
C) there will be budget deficit. D) automatic stabilizers do not kick in.

Question 2

The slope of the credit demand curve from the text book implies that the:

A) higher the rate of taxation, the lower the quantity of credit demanded.
B) higher the real rate of interest, the higher the quantity of credit demanded.
C) higher the real rate of interest, the lower the quantity of credit demanded.
D) higher the rate of taxation, the higher the quantity of credit demanded.