The primary deficit is equal to
A. the deficit plus net interest payments.
B. total tax revenues minus net interest minus government expenditures.
C. the amount by which government purchases, transfers, and net interest exceed tax revenues.
D. the amount by which government purchases and transfers exceed tax revenues.
Answer: D
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How is real seignorage revenue related to inflation? How does the quantity of real seignorage revenue change as inflation rises from zero to a positive level, to still higher levels?
What will be an ideal response?
A lump-sum tax is a tax that
A) can be avoided by strategic behavior. B) does not depend on the actions of the economic agent being taxed. C) does not depend on the actions of the government. D) distorts economic decisions.
What kind of game is shown in Scenario 13.13?
A) Battle of the Sexes. B) Matching Pennies. C) Prisoners' Dilemma. D) The Product Choice game. E) It is not possible to tell what kind of game it is because the strategies have not been identified.
An economy growing at a steady rate of 3.1 percent per year doubles in size approximately every __________ years
A) 40 B) 23 C) 32 D) 16