A budget deficit refers to
A) the measure of economic growth that compares how much a system produces with the resources needed to produce it.
B) government spending more in one year than it takes in during that year.
C) the total of a country's exports minus its imports.
D) the total amount of money that Canada owes its creditors.
E) the exchange rate that is set so prices of similar products in different countries are the same.

Question

Quizplus · Accepted Answer

A budget deficit occurs when a government spends more money in a year than it collects in revenue. This results in the government having to borrow money to finance its operations and can lead to an increase in the national debt over time.

A Budget Deficit Refers to