When the government runs a deficit,which of the following is true? A)T TR - G B)G T + TR C)G TR - T D)T

Name: When the government runs a deficit,which of the following is true? A)T > TR - G B)G > T + TR C)G > TR - T D)T < G + TR
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Question

When the government runs a deficit,which of the following is true?
A)T > TR - G
B)G > T + TR
C)G > TR - T
D)T < G + TR

Quizplus · Accepted Answer

When the government runs a deficit, it means that government spending (G) is greater than government revenues, which is made up of taxes (T) and transfer payments (TR). Therefore, we can say that:
G > T + TR
or rearranging the equation,
T < G + TR 
which is the option D.

When the Government Runs a Deficit,which of the Following Is