Multiple Choice
Consider the following variables: G = government purchases
I = interest rate on government debt
D = stock of government debt
T = net tax revenue
The government's budget deficit can be expressed as
A) ΔD = (G + iD) - T.
B) ΔD = (G - iD) + T.
C) deficit = D - (G + iD) + T.
D) deficit = D - T + (G + iD) .
E) T = ΔD - (G + iD) .
Correct Answer:
Verified
Correct Answer:
Verified
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