The government budget is in DEFICIT when (T) - G > 0 Government expenditures (G) - Investment expenditures (I) < 0 G - Consumption expenditures (C) - | > 0 OT-G- Transfers (TR) - Interest on the Debt (INT) < O

The government budget is in DEFICIT when (T) - G > 0 Government expenditures (G) - Investment expenditures (I) < 0 G - Consumption expenditures (C) - | > 0 OT-G- Transfers (TR) - Interest on the Debt (INT) < O

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter30: Government Budgets And Fiscal Policy

Section: Chapter Questions

Problem 1SCQ: When governments run budget deficits, how do they make up the differences between tax revenue and...

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Question

The government budget is in DEFICIT when
Taxes (T) - G > 0
Government expenditures (G) - Investment expenditures (I) < 0
G- Consumption expenditures (C) - | > 0
OT-G- Transfers (TR) - Interest on the Debt (INT) < 0

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