If government spending is _____ than the tax revenue, then the government is running a budget deficit. In this case, the overall debt of the government will:

Question

Quizplus · Accepted Answer

When government spending is more than the tax revenue, it means the government is spending more money than it is earning, leading to a budget deficit. As a result, the overall debt of the government will increase because it needs to borrow money to cover the shortfall.

If Government Spending Is _____ Than the Tax Revenue, Then