The amount by which government spending exceeds government revenues is called the , and the accumulation of past government borrowing is called the .

Question

Quizplus · Accepted Answer

The amount by which government spending exceeds government revenues is called the deficit. The accumulation of past government borrowing is called the debt. Option A correctly identifies both terms. Option B incorrectly includes the term 'devaluation' which is unrelated to government finances. Option C incorrectly includes the term 'deflation' which also does not relate to government borrowing. Option D only includes one term and is therefore incorrect.

The Amount by Which Government Spending Exceeds Government Revenues Is