Which statement is CORRECT?

Question

Quizplus · Accepted Answer

The budget deficit represents the difference between government spending and tax revenues. This means that the government is spending more than it is taking in through taxes, which leads to a deficit. Option A is incorrect because transfer payments are not always included in the budget deficit. Option B is incorrect because private savings are not necessarily equal to government spending plus the budget deficit. Option C is incorrect because national savings may or may not be equal to tax revenues plus the budget deficit.

Which Statement Is CORRECT