If the government's revenues are less than its expenditures, then it has a budget:
A)deficit.
B)surplus.
C)balance.
D)equality.

Question

Quizplus · Accepted Answer

When a government's expenditures exceed its revenues, it has a budget deficit. This means that the government is spending more money than it is collecting in revenue and is therefore running a deficit. A surplus would happen if revenues exceed expenditures, while a balance would occur if revenues equal expenditures. Equality is not a budgetary term in this context.

If the Government's Revenues Are Less Than Its Expenditures, Then