A budget deficit
A) occurs when government expenditures exceed tax revenues.
B) occurs when tax revenues exceed government expenditures.
C) occurs when transfer payments exceed tax revenues.
D) will always result when Congress and the president cannot agree on expenditures.
E) occurs when monetary policy works in the opposite direction of fiscal policy.

Question

Quizplus · Accepted Answer

A budget deficit occurs when government expenditures exceed tax revenues. This means that the government is spending more money than it is taking in through taxes, and it may have to borrow money to cover the difference.

A Budget Deficit