When are budget deficits created?
A)when interest on government debt is increasing
B)when government tax revenues exceeds its spending
C)when government spending equals its tax revenues
D)when government spending exceeds its tax revenues

Question

Quizplus · Accepted Answer

Budget deficits are created when government spending exceeds its tax revenues. This means that the government is spending more than it is taking in, resulting in a deficit that must be funded through borrowing or other means.

When Are Budget Deficits Created