Which of the following statements is false?
A) Cyclical budget balance is the difference between the actual budget balance and structural budget balance.
B) Primary budget equals total net tax revenues minus interest payments on outstanding government bonds.
C) Primary budget balance excludes interest payments on outstanding government bonds.
D) In 2000, a strong economy and an inflationary gap created a cyclical budget surplus.

Question

Quizplus · Accepted Answer

B) is incorrect because the primary budget equals total government revenues minus all expenditures excluding interest payments on outstanding government bonds, not just net tax revenues.

Which of the Following Statements Is False