If the tax revenue of the federal government is less than its spending,then the federal government necessarily
A)runs a budget deficit.
B)runs a budget surplus.
C)runs a national debt.
D)will increase taxes.

Question

Quizplus · Accepted Answer

When tax revenue of the federal government is less than its spending, it means that the federal government is spending more money than it is taking in through taxes. This creates a budget deficit.  Running a budget surplus would mean that the government is taking in more money than it is spending. Running a national debt refers to the overall accumulation of past budget deficits, which can happen when spending exceeds revenue over a long period of time. Increasing taxes could be one way to address a budget deficit, but it is not necessarily the only option.

If the Tax Revenue of the Federal Government Is Less