You Are Given the Following Budget Data for a Country

question 54

Short Answer

You are given the following budget data for a country that has both a central government and local governments:
Central purchases of goods500
Local purchases of goods250
Central transfer payments200
Local transfer payments100
Grants in aid (central to local)150
Central tax receipts800
Local tax receipts150
Interest received from private sector by central government25
Interest received from private sector by local governments10
Total central government debt1500
Total local government debt0
Central government debt held by local governments300
Nominal interest rate10%
a.How much is the deficit for the central government,the local government,and the total of the central and local governments?
b.How much is the primary deficit for the central government,the local government,and the total of the central and local governments?

---

Definitions:

Vocabulary

The set of words known and used by a person in a language.

Monolingual Children

Children who are exposed to and develop proficiency in only one language during childhood.

Anxiety Disorder

A mental health disorder characterized by feelings of worry, anxiety, or fear that are strong enough to interfere with one's daily activities.

Intellectual Disability

A term used to describe significant limitations in intellectual functioning and adaptive behavior, affecting conceptual, social, and practical skills.