When expenses exceed revenues,the state has ______.
A)bonded debt
B)a budget deficit
C)debt
D)excess revenue

Question

Quizplus · Accepted Answer

A budget deficit occurs when a state's expenses exceed their revenues, meaning they are spending more money than they are bringing in. This can lead to borrowing or increased debt. A is incorrect as bonded debt refers specifically to debt that is backed by bonds, which may or may not be a result of a budget deficit. C is too broad, as debt can be incurred in other ways besides a budget deficit. D is incorrect as excess revenue suggests that the state is generating more revenue than they are spending, which is opposite to the scenario in the question.

When Expenses Exceed Revenues,the State Has ______