In terms of budget deficits, which is a flow variable and which is a stock variable?
A) A budget deficit is a flow variable; debt is a stock variable.
B) A budget deficit is a stock variable; debt is a flow variable.
C) A budget deficit and the debt are both stock variables.
D) A budget deficit and the debt are both flow variables.

Question

In terms of budget deficits, which is a flow variable and which is a stock variable?  
A) A budget deficit is a flow variable; debt is a stock variable. 
B) A budget deficit is a stock variable; debt is a flow variable. 
C) A budget deficit and the debt are both stock variables. 
D) A budget deficit and the debt are both flow variables.

Quizplus · Accepted Answer

A budget deficit is a flow variable because it represents the amount by which government expenditures exceed revenues within a given time period (usually a year). In contrast, debt is a stock variable because it represents the total amount of money owed by the government at a particular point in time, which includes accumulated deficits from past years.

In Terms of Budget Deficits, Which Is a Flow Variable