When the federal government raises less money than it spends in a year it is called

Question

Quizplus · Accepted Answer

A budget deficit occurs when the federal government spends more money than it raises in revenue for a given year. This creates a shortfall in funding and leads to the government having to borrow money to cover the difference, contributing to the overall national debt. A recession can occur due to various factors, such as a significant decrease in economic activity, whereas inflation refers to a rise in the general level of prices of goods and services over time. Stagflation is an economic condition that features high inflation rates accompanied by stagnant economic growth. Therefore, the only appropriate answer is E) a budget deficit.

When the Federal Government Raises Less Money Than It Spends