1. Debt is:

A) when G > T in a year.
B) when T > G in a year.
C) the total amount owed minus taxes.
D) the total amount owed minus spending.
E) the total amount owed.

2. Deficit is:

A) when G > T in a year.
B) when T > G in a year.
C) the total amount owed minus taxes.
D) the total amount owed minus spending.
E) the total amount owed.

3. A possible way to decrease the deficit is to:

A) decrease government spending or increase tax revenues.
B) increase RGDP.
C) increase productivity.
D) increase human capital formation.
E) all of the above are possible ways to decrease the deficit.