A Mathematical Formula for the Deficit Would Be

question 180

Multiple Choice

A mathematical formula for the deficit would be

• A)C + I + G − Transfers + Taxes 
• B)C + I + G + Transfers − Taxes 
• C)I + G + Transfers − Taxes 
• D)G + Transfers − Taxes

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Definitions:

Credit Extension

The act of providing a loan or increasing the credit limit available to a borrower, often by a financial institution.

Receivables Financing

A financial practice where a company uses its accounts receivable as collateral to secure funding.

Commercial Paper

Commercial paper is a short-term, unsecured promissory note issued by corporations, typically used for the financing of accounts receivable, inventories, and meeting short-term liabilities.

Discount Period

The time frame during which a seller offers a buyer a reduction from the normal cost of a good or service, often to incentivize prompt payment.