Author Question: If the government has no debt initially, but then has annual revenues of 10 billion per year for 4 ... (Read 108 times)

Bernana · **on:** Jun 30, 2018

If the government has no debt initially, but then has annual revenues of 10 billion per year for 4 years and annual expenditures of 10.5 billion per year for 4 years, then the government has

A) a budget surplus of 0.5 billion per year and a debt of 2 billion at the end of the 4 years.
B) a budget deficit of 0.5 billion per year and a debt of 2 billion at the end of the 4 years.
C) a budget surplus of 0.5 billion per year and a surplus of 2 billion at the end of the 4 years.
D) a budget deficit of 0.5 billion per year and a budget surplus of 2 billion at the end of the 4 years.

Question 2

The degree to which an asset can be acquired or disposed of without much loss of nominal value or transaction costs is known as

A) fiducia. B) credit. C) fiat money. D) liquidity.