When the government's outlays exceed its tax revenues, the government

Question

Quizplus · Accepted Answer

When the government's outlays exceed its tax revenues, it incurs a budget deficit, which means the government needs to borrow money from the public or other countries in order to cover its expenses. This leads to an increase in the government's debt, which is the total amount of money owed by the government to its creditors. Therefore, all of the above answers are correct.

When the Government's Outlays Exceed Its Tax Revenues, the Government