A budget deficit would result when a person's or family's

Question

Quizplus · Accepted Answer

A budget deficit occurs when actual expenses exceed planned expenses, resulting in a shortfall or negative balance. This means that the person or family is spending more than they have budgeted for, and they may need to find ways to cut expenses or increase their income to balance their budget. Option A is incorrect because actual expenses being less than planned expenses would result in a budget surplus, not a deficit. Option B describes a positive net worth, which is not related to budget deficits. Option C describes a balanced budget, not a deficit. Option E describes a decrease in net worth, which may or may not be related to a budget deficit, but doesn't provide enough information on its own.

A Budget Deficit Would Result When a Person's or Family's