Question : A government budget deficit occurs when:

Option 1: Revenues exceed expenditures
 

Option 2: Expenditures exceed revenues
 

Option 3: The budget is balanced

Option 4: There are no revenues or expenditures

Question : The difference between total government expenditures and total government revenues is known as:

Option 1: The budget deficit
 

Option 2: The budget surplus
 

Option 3: The national debt

Option 4: The trade deficit

Question : Which of the following is not a component of aggregate demand?

Option 1: Consumption expenditure
 

Option 2: Investment expenditure
 

Option 3: Government expenditure

Option 4: Savings

Question : A government budget that includes provisions for an economic downturn is known as:

Option 1: A countercyclical budget
 

Option 2: A balanced budget
 

Option 3:  A deficit budget

Option 4: A surplus budget

Question : Government borrowing to finance budget deficits ____________.

Option 1: will exert downward pressure on interest rates

Option 2: will not affect interest rates

Option 3: will increase the supply of loanable funds

Option 4: will put upward pressure on interest rates