A budget deficit is best defined as the
A)shortage of spending power created by a government spending cut.
B)shortage of spending power created by a tax increase.
C)accumulation of past debt that has not been covered by taxes.
D)amount by which a government's expenditures exceed receipts during a specific time period.

Question

Quizplus · Accepted Answer

A budget deficit is the amount by which a government's expenditures exceed its receipts over a specific period, usually a year. It is essentially the opposite of a budget surplus. A deficit occurs when a government spends more money than it takes in through taxation, borrowing, or other sources of revenue. This results in an increase in the government's debt.

A Budget Deficit Is Best Defined as the