The official measure of the deficit is represented by which of the following expressions?
A) iB + G - T.
B) rB - G + T.
C) iB + T - G.
D) (i - n)B + G - T.
E) uB + G - T.

Question

Quizplus · Accepted Answer

The official measure of the deficit is represented by the expression iB + G - T, where iB represents interest on the debt, G represents government spending, and T represents taxes. This formula captures the basic components of a government's budget deficit: the costs of servicing existing debt, the total spending, and the total tax revenue.

The Official Measure of the Deficit Is Represented by Which