Government budget surplus or deficit

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1. What makes it conceivable for a country to experience constant debt to GDP ratio and at the same time experience continual government budget deficits is:

positive private savings.

trade surpluses.

continual inflation.

real economic growth.

2. Government budget surplus or deficit is:

well defined and straightforward to measure.

well defined but frequently distorted by creative but improper accounting practices.

difficult to measure and can be defined legitimately in several ways.

so arbitrarily defined that it is meaningless.

3. A rise in the government budget deficit will have a :

more negative effect on income when crowding out is weak.

more positive effect on income when crowding out is strong.

less negative effect on income when crowding out is weak.

less positive effect on income when crowding out is strong.

Reference no: EM13984045

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