The government budget is in DEFICIT when     T - G - Transfers (TR) - Interest on the Debt (INT) < 0   Government expenditures (G)  - Investment expenditures (I) < 0   Taxes (T) - G > 0   G - Consumption expenditures (C ) - I > 0

Suppose the government decides to decrease taxes in an effort toincrease consumer spending and investment in the economy.(a) Will this plan succeed in accomplishing both goals?(b) In equilibrium, what happens to interest rates as a result of this action?(c) Would you characterize this as a case of fiscal crowding out? Explain.

Determine the state of the budget (in deficit, in balance, in surplus), if: Government spending on the economy is 5000 monetary units, while rate of taxes incomes is 7000 monetary units. Public transfers are purchased in the amount of 1100 monetary units. The national debt is 9000 monetary units, so the State spends 10% per annum to pay this loan off.

2) Transfer payments are the ________ in the government&#39;s budget. A) smallest expenditure source B) largest expenditure source C) smallest revenue source D) largest revenue source 3) Personal taxes are the ________ in the government&#39;s budget. A) smallest expenditure source B) largest expenditure source C) smallest revenue source D) largest revenue source 4) A government&#39;s debt is increased when it A) balances is budget. B) buys more bonds. C) runs a deficit. D) runs a surplus. 5) When a government runs a surplus A) its debt increases. B) it must raise taxes. C) its debt decreases. D) it must cut spending. 6) The amount the government owes to the public is the federal debt. 7) If tax receipts are greater than government expenditures the government is running a surplus. 8) If the government runs a surplus, then the government debt increases. 9) Transfer payments are the largest part of the U.S.…