If the difference between tax revenue and government expenditures is negative,it implies that
A)tax revenue is insufficient to cover government spending.
B)a government budget deficit exists.
C)the government will be issuing new debt securities.
D)all of the options

Question

Quizplus · Accepted Answer

If the difference between tax revenue and government expenditures is negative, it means that tax revenue is insufficient to cover government spending, which leads to a government budget deficit. To cover this deficit, the government may need to issue new debt securities. Therefore, all of the options are correct.

If the Difference Between Tax Revenue and Government Expenditures Is