Which of the following is TRUE when a budget deficit exists?
A) Government expenditures exceed tax revenues.
B) Tax revenues exceed government expenditures.
C) A trade surplus exists.
D) Dissaving exists.

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 receiving in revenue, resulting in a shortfall that must be financed through borrowing.

Which of the Following Is TRUE When a Budget Deficit