When the federal government spends more in a year than it receives in tax revenues,the result is called a:
A)federal reserve allowance.
B)federal deficit.
C)GDP deflator.
D)balance of payments deficit.

Question

Quizplus · Accepted Answer

When the federal government spends more in a year than it receives in tax revenues, it results in a federal deficit. This means that the government is borrowing money to finance its spending, leading to an increase in national debt.

When the Federal Government Spends More in a Year Than