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Question
Suppose that the government of Springfield spends $2 trillion in 2011 and receives tax revenues of $1.5 trillion. Which of the following is true?
A) Springfield has a budget surplus of $0.5 trillion.
B) Springfield has a budget deficit of $0.5 trillion.
C) Springfield has a trade deficit of $0.5 trillion.
D) Springfield has a trade surplus of $0.5 trillion.
Answer
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