The primary deficit is equal to
A)the amount by which government purchases, transfers, and net interest exceed tax revenues.
B)the amount by which government purchases and transfers exceed tax revenues.
C)the deficit plus net interest payments.
D)total tax revenues minus net interest minus government expenditures.

Question

Quizplus · Accepted Answer

The primary deficit only considers government purchases and transfers and excludes net interest payments. It is calculated as the difference between government expenditures on purchases and transfers and tax revenues.

The Primary Deficit Is Equal to