If the federal government brings in $3 trillion in tax revenues and spends $4 trillion,the government has a budget:

Question

Quizplus · Accepted Answer

A budget deficit occurs when the government spends more money than it brings in. In this case, the government is bringing in $3 trillion in tax revenues but spending $4 trillion, resulting in a deficit of $1 trillion. Choice A is incorrect because there is a deficit, not a surplus. Choice C is incorrect because a surplus of $7 trillion would mean the government is bringing in much more revenue than it is spending, which is not the case. Choice D is incorrect because the deficit is actually $1 trillion, not $.75 trillion.

If the Federal Government Brings in $3 Trillion in Tax