Government outlays minus government receipts when greater than zero equals

Question

Quizplus · Accepted Answer

When government outlays (spending) are greater than government receipts (revenue), it leads to a budget deficit. To cover this deficit, the government must borrow money, which is known as new debt issued by the Treasury. This borrowing creates a net demand for loanable funds, as the government has to compete with other borrowers in the market. Therefore, all of the choices are correct.

Government Outlays Minus Government Receipts When Greater Than Zero Equals