When the federal government is running a budget deficit:
A) government tax revenues exceed government expenditures.
B) government expenditures exceed government tax revenues.
C) the economy must be in an economic recession.
D) the size of the national debt will decline.

Question

Quizplus · Accepted Answer

A budget deficit occurs when government expenditures exceed government tax revenues. This means that the government is spending more money than it is bringing in through taxes, and must borrow to finance its spending.

When the Federal Government Is Running a Budget Deficit