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 above

Question

Quizplus · Accepted Answer

A negative difference between tax revenue and government expenditures (also known as a budget deficit) implies that tax revenue is not sufficient to cover government spending, and as a result, the government will need to issue new debt securities to fund its operations. Therefore, all of the above options are correct.

If the Difference Between Tax Revenue and Government Expenditures Is