The budget deficit is the difference between government outlays (spending) and tax revenues. Option A is incorrect as the budget deficit increased during the Bush Administration. Option B is incorrect as the budget deficit reached its peak in 2009, not in 2000. Option C is incorrect as it defines the national debt, not the budget deficit.

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The Budget Deficit

Question 53

Multiple Choice

The budget deficit

A) decreased during the Bush Administration.
B) reached its peak in the year 2000.
C) is the total outstanding borrowing by the government.
D) is the difference between government outlays and tax revenues.

Correct Answer: