If government spending exceeds government receipts,the government has a
A)budget surplus.Other things the same,the surplus rises if taxes rise.
B)budget surplus.Other things the same the surplus rises if taxes fall.
C)budget deficit.Other things the same,the deficit rises if taxes rise.
D)budget deficit.Other things the same,the deficit rises if taxes fall.

Question

Quizplus · Accepted Answer

A budget deficit occurs when government spending exceeds government receipts. If taxes fall, government receipts decrease, which would increase the deficit.

If Government Spending Exceeds Government Receipts,the Government Has a