Consider the Following Variables: G = Government Purchases

question 95

Multiple Choice

Consider the following variables: G = government purchases
I = interest rate on government debt
D = stock of government debt
T = net tax revenue
The government's budget deficit can be expressed as

• A)ΔD = (G + iD)- T.
• B)ΔD = (G - iD)+ T.
• C)deficit = D - (G + iD)+ T.
• D)deficit = D - T + (G + iD).
• E)T = ΔD - (G + iD).

---

Definitions:

Exchange Rate

The equivalent value of a currency when exchanged for a different one.

Round-Trip Transaction

A term referring to the complete process of buying and then selling a financial instrument, or vice versa.

Exchange Rates

The evaluation of one currency's value for the intention of exchanging it for another, indicating how much one currency equates to in another currency.

Airport Kiosk

An automated terminal located at airports that allows passengers to perform tasks such as check-in, ticket printing, and information access.