Question

Use the following variable definitions: G = government purchases TR = transfer payments TAX = taxes collected INT = interest government pays on its debt

Which of the following states that the government budget is in deficit?

A. G + TR + INT – TAX >0

B. G + TR + INT>0

C. G – TAX<0

D. G + TR – TAX <0

Which of the following describes total government outlays?

A. G + TR + INT

B. G – TAX

C. G + TR – TAX

D. G + TR + INT – TAX