The "Official Measure" of the Deficit (The One Reported by the Government)

question 20

Multiple Choice

The "official measure" of the deficit (the one reported by the government)

• A)tells us the change in government nominal debt.
• B)is equal to nominal interest payments on the debt plus the primary deficit.
• C)overestimates the real budget deficit whenever the inflation rate is positive.
• D)all of the above
• E) none of the above

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Definitions:

Capital Losses

Capital losses occur when the sale of a capital asset, such as stocks or real estate, results in a loss, which can offset capital gains for tax purposes.

Carry Forward

A tax policy that allows individuals or companies to use a current year's tax losses to offset future taxable income.

Section 1231

A section of the U.S. tax code that allows for the favorable tax treatment of gains and losses on the sale or exchange of business property.

Aggregate

is the total amount or sum of individual parts combined.