When a government spends more than it collects in taxes, it runs a:
A) trade deficit.
B) trade surplus.
C) budget surplus.
D) budget deficit.

Name: When a government spends more than it collects in taxes, it runs a: A) trade deficit. B) trade surplus. C) budget surplus. D) budget deficit.
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Question

Quizplus · Accepted Answer

When a government spends more than it collects in taxes, it runs a budget deficit. This means that the government has to borrow money to cover its expenses.

When a Government Spends More Than It Collects in Taxes