Suppose the existing stock of government debt is $500 billion. The interest rate is 5%. Government purchases are $25 billion, and government transfers another $50 billion. Tax revenue is $100 billion. The total budget surplus is: Group of answer choices $50 billion $75 billion $10 billion $0 billion (the budget is balanced)

If the federal government spends $1.4 trillion more dollars than it collects in tax revenue, what occurs?Select the correct answer below:a profita budget surplusa balanced budgetA budget deficit.

Suppose the existing stock of government debt is positive. The government’s intertemporal budget constraint implies which of the following are FALSE: Group of answer choices The primary surplus must always be positive in the future The present value of future primary surpluses must equal the value of outstanding debt The government can run deficits in the future The present value of future taxes must exceed the present value of future spending

If ABC Co. has earnings before interest and taxes of $2 million with debt of $5 million, what is the total cash flow to bondholders and stockholders if the interest rate is 10 percent and the tax rate is 21 percent?Multiple choice question.$1,500,000$975,500$1,975,000$1,685,000

Consider the following economy:(1) C = 1000 + 0.3 (Y - T)(2) I = 700(3) G = 500(4) T = 400The government decided to run a balanced budget. By how much would taxes have to increase or decrease? (

If the economy is in equilibrium and the government increases spending by $100 billion, equilibrium aggregate expenditures increase to $________ billion.Group of answer choices1,7001,8002,0002,400