When the government runs a budget deficit it increases the:
A)federal capital account.
B)money supply.
C)balance of payments deficit.
D)national debt.

Question

Quizplus · Accepted Answer

When the government runs a budget deficit, it means that it is spending more money than it is taking in through taxes and other sources of revenue. To make up for the shortfall, the government must borrow money by issuing bonds. This increases the national debt, which is the total amount of money that the government owes to its creditors.

When the Government Runs a Budget Deficit It Increases The