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Advanced Placement (AP), 22.04.2020 23:48 trisngle2565
PLEASE HELP ASAP The government of Tatooine had a balanced budget last year. However, an unanticipated recession
triggered by the wanton destruction of Jabba's Palace leads to a decrease in tax revenues, even though
government spending and transfer payments did not change.
What happens to the budget deficit and national debt in Tatooine as a result of the decrease in tax
revenues?
Choose 1
(A
There is a budget deficit; the debt will increase
(B)
There is a budget surplus, national debt will decrease
C) There is a balanced budget; national debt will increase
(D)
There is a budget surplus; no impact on national debt
E) There is a budget deficit; no impact on national debt
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