If government expenditures exceed tax receipts then,other things being constant

Question

Quizplus · Accepted Answer

If government expenditures exceed tax receipts, then the government needs to borrow money, which increases the public debt. A surplus exists when government expenditures are less than tax receipts, and a balanced budget exists when government expenditures equal tax receipts. The deficit becomes smaller when government expenditures decrease or tax receipts increase.

If Government Expenditures Exceed Tax Receipts Then,other Things Being Constant