Question : Use the following variable definitions: G = government purchases TR
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
