Post Utme Unn 2018 Economics Question 34

Practice objective / multiple choice question 34 from the 2018 Post Utme Unn Economics examination.

Post Utme Unn 2018 Economics Objective / Multiple Choice
Question 34 POST_UTME_UNN • 2018 • ECONOMICS • objective

A government budget is given by B = T + I + G. If the government's tax revenue (T) increases by 5% and its interest payments (I) remain cons\tant, what will be the effect on the government's budget deficit?

Answer Options

Correct Answer A. The government's budget deficit will increase by 5%.
B. The government's budget deficit will increase by 10%.
C. The government's budget deficit will remain unchanged.
D. The government's budget deficit will decrease by 5%.
Correct Answer
A
Correct Option:
The government's budget deficit will increase by 5%.

About This Question

This is Post Utme Unn 2018 Economics Question 34. It is one of the objective questions from the 2018 Post Utme Unn Economics examination.

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