What Is the Difference Between the Government's Debt and the Government's

question 4

Multiple Choice

What is the difference between the government's debt and the government's deficit?

• A)The debt is the annual shortfall of revenues minus disbursements whereas the deficit is the accumulation of past debts.
• B)The debt is the amount the government pays in interest payments whereas the deficit has not yet incurred interest charges.
• C)The debt is the amount payable to the Bank of Canada whereas the deficit is the annual shortfall of revenue minus disbursements.
• D)The debt is the accumulation of past deficits whereas the deficit is the annual shortfall between revenues and disbursements.
• E)The debt is the difference between tax revenues and government expenditures whereas the deficit is the difference between tax revenues and borrowing.

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Definitions:

Disavow the Contract

The act of denying any responsibility or support for the contract, thereby seeking to void the agreement.

Identified to the Contract

Identified to the Contract refers to goods that have been designated as the subject of a sales or service contract.

Revised UCC Article 1

refers to updates or changes made to the first article of the Uniform Commercial Code, which governs sales and commercial transactions in the United States.

Good Faith

A concept implying honesty in intent and fairness in practice, without any intention to deceive or defraud in a transaction or contractual agreement.