The gap between government spending and its revenues is called
A) the trade imbalance.
B) the deficit.
C) the lag time.
D) seignorage.

Question

Quizplus · Accepted Answer

The gap between government spending and its revenues is called the deficit. It means that the government is spending more money than it is taking in. The deficit can lead to an increase in government borrowing and can have economic consequences.

The Gap Between Government Spending and Its Revenues Is Called