In which situation does the federal government run a budget deficit?
A)spending outpaces revenue from taxes
B)tax revenue outpaces its expenditures
C)monetary policies reduce the amount of money in circulation
D)gold reserves are inadequate to support the existing money supply

Question

Quizplus · Accepted Answer

A budget deficit occurs when the government spends more money than it receives in tax revenue. This can happen due to increased spending on programs, economic downturns, or other factors.

In Which Situation Does the Federal Government Run a Budget