$\begin{array}{lllll}\hline
&\text { Investment }& \text {Private saving }& \text { Net taxes } &\text { Government expenditures }\
\text { Real interest rate } & \text { (billions of } & \text { (billions of } & \text { (billions of } & \text { (billions of } \
\text { (percent per year) } & \text { 2005 dollars) } & \text { 2005 dollars) } & \text { 2005 dollars) } & \text { 2005 dollars) }\
\hline 3 & 60 & 20 & 40 & 20 \
4 & 50 & 30 & 40 & 20 \
5 & 40 & 40 & 40 & 20 \
6 & 30 & 50 & 40 & 20 \
7 & 20 & 60 & 40 & 20 \
\hline
\end{array}$
The table above gives a nation's investment demand and saving supply schedules. It also has the government's net taxes and expenditures.
-The government has a budget
A)surplus of $20 billion.
B)deficit of $20 billion.
C)deficit of $60 billion.
D)surplus of $60 billion.
E)surplus of $40 billion.

Question

$\begin{array}{lllll}\hline 
&\text { Investment }& \text {Private saving }& \text { Net taxes } &\text { Government expenditures }\
\text { Real interest rate } & \text { (billions of } & \text { (billions of } & \text { (billions of } & \text { (billions of } \
\text { (percent per year) } & \text { 2005 dollars) } & \text { 2005 dollars) } & \text { 2005 dollars) } & \text { 2005 dollars) }\
\hline 3 & 60 & 20 & 40 & 20 \
4 & 50 & 30 & 40 & 20 \
5 & 40 & 40 & 40 & 20 \
6 & 30 & 50 & 40 & 20 \
7 & 20 & 60 & 40 & 20 \
\hline
\end{array}$
The table above gives a nation's investment demand and saving supply schedules. It also has the government's net taxes and expenditures. 
-The government has a budget
A)surplus of $20 billion.
B)deficit of $20 billion.
C)deficit of $60 billion.
D)surplus of $60 billion.
E)surplus of $40 billion.

Quizplus · Accepted Answer

The government's budget is calculated as net taxes minus government expenditures. Here, net taxes are $40 billion and government expenditures are $20 billion, resulting in a budget surplus of $20 billion.

The Table Above Gives a Nation's Investment Demand and Saving