The deficit can be defined in simple terms as
A)Tax receipts − government expenditures + transfers.
B)Tax receipts + government expenditures + transfers.
C)Government expenditures + transfers − tax receipts.
D)Government expenditures − transfers − tax receipts.

Question

Quizplus · Accepted Answer

The deficit is the difference between government expenditures and tax receipts, but transfer payments (such as welfare or unemployment) can also affect the deficit. So the formula is Government expenditures + transfers − tax receipts.

The Deficit Can Be Defined in Simple Terms as