Which of the following correctly describes a government's deﬁcit?
A) It is the level of crowding out caused when government expenditure is increased.
B) It is the difference between government spending and taxation.
C) It is the amount of funds that have not been spent out of tax receipts.
D) It is the difference between the exports and imports of a country.

Question

Quizplus · Accepted Answer

A government's deficit is defined as the difference between its spending and its tax revenues. When a government spends more than it collects in taxes, it runs a deficit.

Which of the Following Correctly Describes a Government's Deﬁcit