There is a federal budget deficit when

Question

Quizplus · Accepted Answer

A federal budget deficit occurs when the government spends more money than it collects in taxes. This results in an increase in the government's debt since it must borrow money to make up for the deficit. Option A is incorrect because a budget surplus occurs when the government spends less than it collects in taxes. Option C is incorrect because a balanced budget occurs when the government's spending and taxes are equal. Options D and E may affect the government's revenue and spending, but they do not directly relate to a budget deficit.

There Is a Federal Budget Deficit When