A federal budget ________ occurs when the federal government spends more than it collects in taxes.

Question

Quizplus · Accepted Answer

A federal budget deficit occurs when the government spends more money than it receives in revenue from taxes, fees, and other sources. This results in an increase in the national debt as the government borrows money to cover its spending. A surplus, on the other hand, occurs when the government collects more revenue than it spends, which can be used to pay down existing debt. Equilibrium refers to a state of balance where revenues and expenditures are equal, and a ceiling typically refers to a limit or cap on spending.

A Federal Budget ________ Occurs When the Federal Government Spends