A budget deficit is the difference between
A) foreign holdings of U.S. assets and U.S. holdings of foreign assets.
B) government tax revenues and government outlays.
C) U.S. imports and U.S. exports.
D) what U.S. consumers buy and U.S. producers produce.

Question

Quizplus · Accepted Answer

A budget deficit is the amount by which a government's expenditures exceed its revenues in a given year. This difference between government tax revenues and government outlays is what creates a budget deficit. Therefore, option B is the correct answer.

A Budget Deficit Is the Difference Between