The difference between the domestic deficit and the overall deficit is:
A) revenue collected from overseas.
B) government spending on imports.
C) tax revenue minus government spending.
D) inflation.
E) automatic stabilisers.

Question

Quizplus · Accepted Answer

Domestic deficit refers to the difference between government revenue and spending within a country. Overall deficit refers to the difference between the government's total revenue and spending, including imports and exports. Therefore, the difference between the two is government spending on imports, making option B the correct choice.

The Difference Between the Domestic Deficit and the Overall Deficit