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

Question

Quizplus · Accepted Answer

When the federal government is running a budget deficit, it means that the government is spending more money than it is receiving in revenue. This results in an increase in the national debt as the government borrows money to cover the shortfall. Therefore, option B is the correct choice.

When the Federal Government Is Running a Budget Deficit