Which of the following is true when a budget deficit exists?
A) Government expenditures exceed tax revenues.
B) Tax revenues exceed government expenditures.
C) A trade surplus exists.
D) Dissaving exists.

Question

Quizplus · Accepted Answer

A budget deficit occurs when government expenditures exceed tax revenues. This means that the government is spending more than it is taking in through taxes, resulting in a shortfall that must be financed through borrowing or other means. Options B, C, and D are not correct because they do not accurately describe the situation that arises when a budget deficit exists.

Which of the Following Is True When a Budget Deficit