The primary deficit is represented by which of the following?
A) iB + G - T.
B) rB + G - T.
C) rB - G + T.
D) G - T.
E) iB - G + T.

Question

Quizplus · Accepted Answer

The primary deficit is the difference between government spending (G) and revenues from non-borrowing sources (T). Therefore, the correct formula for the primary deficit is G - T. Choices A, B, C, and E either include borrowing or interest payments, which are not part of the primary deficit.

The Primary Deficit Is Represented by Which of the Following