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A reduction in government borrowing can:
Question 19 options:
a)
decrease the incentive to invest.
b)
increase the interest rate.
c)
crowd out private investment in human capital.
d)
give private investment an opportunity to expand.
If the state of Washington's government collects $75 billion in tax revenues in 2013 and total spending in the same year is $74.8 billion, the result will be a:
Question 20 options:
a)
budget deficit.
b)
budget surplus.
c)
decrease in payroll tax.
d)
decrease in proportional taxes.

Sagot :

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