Which of the following equations describes the government deficit?
A)G + TR + INT - T
B)G + TR - INT - T
C)G - TR + INT - T
D)G - TR - INT - T

Question

Quizplus · Accepted Answer

The government deficit is described by the equation G + TR + INT - T, where G is government spending, TR is transfer payments, INT is interest on debt, and T is taxes. This equation sums the government's expenditures (including spending, transfers, and interest payments) and subtracts its revenue (taxes) to find the deficit.

Which of the Following Equations Describes the Government Deficit