The amount by which government purchases and transfers exceed tax revenues is known as the
A)primary surplus.
B)primary deficit.
C)primary current deficit.
D)government debt.

Question

Quizplus · Accepted Answer

The amount by which government purchases and transfers exceed tax revenues is known as the primary deficit. This indicates that the government is spending more than what it is earning through taxes, resulting in a deficit. Option A, primary surplus, would mean that the government has more tax revenues than its spending and is saving the excess amount. Option C, primary current deficit, does not accurately reflect the entire government's expenses as it only includes the current expenses and excludes future obligations. Option D, government debt, refers to the cumulative amount of deficits the government has incurred over time.

The Amount by Which Government Purchases and Transfers Exceed Tax