If outlays exceed revenues, the government's budget balance is _______, and the government has a budget _______.

Question

Quizplus · Accepted Answer

A budget deficit occurs when the government spends more money than it generates in revenue. A budget surplus, on the other hand, occurs when the government generates more revenue than it spends. A zero budget balance occurs when outlays are equal to revenues. Thus, when outlays exceed revenues, the government has a budget deficit and the budget balance is negative. The correct answer is C.

If Outlays Exceed Revenues, the Government's Budget Balance Is _______