Multiple Choice
Suppose that the government of Smallville spends $2 trillion in 2018 and receives tax revenues of $1.5 trillion in that same year. Which of the following is TRUE?
A) Smallville has a budget surplus of $0.5 trillion.
B) Smallville has a budget deficit of $0.5 trillion.
C) Smallville has a trade deficit of $0.5 trillion.
D) Smallville has a trade surplus of $0.5 trillion.
Correct Answer:
Verified
Correct Answer:
Verified
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