Suppose that the government's total tax receipts are $130,government spending on goods and services is $100 and transfer payments are $40.What is the government's budget surplus or deficit?
A)A surplus of $30.
B)A surplus of $10.
C)A deficit of $30.
D)A deficit of $10.

Question

Quizplus · Accepted Answer

The government's budget deficit is calculated as its spending (including both goods and services and transfer payments) minus its total tax receipts. Here, spending is $100 + $40 = $140, and tax receipts are $130. Therefore, the deficit is $140 - $130 = $10.

Suppose That the Government's Total Tax Receipts Are $130,government Spending