The Primary Deficit Is Equal to

question 29

Multiple Choice

The primary deficit is equal to

• A)the total deficit minus interest payments on the government debt
• B)the total government deficit minus all outstanding government securities held by foreign financial investors
• C)all government revenues minus all government outlays including interest payments on the national debt
• D)the federal government's deficit minus the deficit of state and local governments
• E)mandatory government outlays minus discretionary government outlays

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Definitions:

Easement

A legal right to use another's land for a specific limited purpose.

Adverse Possession

A legal principle allowing a person to claim ownership of land or property owned by another if they openly occupy and use it for a certain period.

Profit

The financial gain obtained when the amount earned from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Consideration

An item of worth provided by each party involved in a contract, motivating them to agree to swap obligations reciprocally.