In examining the national income accounts of the closed economy of Nepotocracy you see that this year it had taxes of $100 billion, transfers of $20 billion, and government purchases of goods and services of $70 billion. You also notice that last year it had private saving of $70 billion and investment of $50 billion. In which year did Nepotocracy have a budget deficit of $20 billion? A. this year but not last year B. last year but not this year C. neither this year nor last year D. this year and last year

B. last year but not this year

Explanation:

Last Year

Private savings + Public savings = Investment

70 + Public = 50

Public saving = 50 - 70

= -$20 billion

Public saving refers to a budget surplus because it means that the Government gets to save the amount of its revenue that it did not spend.

If Public saving is negative then there was a BUDGET DEFICIT.

This year

Budget surplus (deficit) = Government Revenue - Expenditure and transfer payments

= 100 - 70 - 20

= $10 billion

This year has a budget surplus.

enlightenment impacted society by introducing the idea that mankind could use reason to discover the laws of the world and the rights of mankind. these ideals affected all factions of society, from politics to religion.

this conflict is person vs. society

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