If net taxes are less than government outlays, the government sector has a budget__________ and government saving __________.

Question

Quizplus · Accepted Answer

When net taxes are less than government outlays, the government sector has a budget deficit, meaning that it is spending more than it is collecting in taxes. Government saving in this scenario is negative, as it is drawing down on existing savings or borrowing to finance the deficit.

If Net Taxes Are Less Than Government Outlays, the Government