That a country is buying more than is selling
That a country is selling more than is buying
That a government is spending more than it takes in taxation
That a government is spending less than it takes in taxation
That a government is spending as much as it takes in taxation
Correct answer is C
A budget deficit occurs when the government spends more than it receives.
The same as the equilibrium supply
Greater than equilibrium supply
Less than the equilibrium supply
Determined later by government
None of these
Correct answer is C
If the market price is below the equilibrium price, the quantity supplied is less than the quantity demanded, creating a shortage. The market is not clear. It is in shortage. The market price will rise because of this shortage.