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The Government's Budget Deficit Is Best Represented by Which of the Following

Question 17

Multiple Choice

The government's budget deficit is best represented by which of the following equations?


A) Budget deficit = Government purchases of goods and services + Transfer payments + Interest payments on existing debt + Seigniorage
B) Budget deficit = Government purchases of goods and services + Transfer payments + Tax revenue+ Newly issued government bonds
C) Budget deficit = Government purchases of goods and services + Interest payments on existing debt + Newly issued government bonds + Seigniorage + Transfer payments - Tax revenue
D) Budget deficit = Government purchases of goods and services + Transfer payments - Tax revenue + Interest payments on existing debt

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