The government deficit:
A)is essentially the same as the government debt.
B)is much higher than the government debt.
C)measures the difference between the amount government spends and the amount it collects in tax revenues in a given period.
D)is the total amount of money a government owes at a particular time.

Question

Quizplus · Accepted Answer

The government deficit measures the difference between government spending and tax revenue in a given period, usually a year. It does not include previous debts accumulated over time, which make up the government debt. Therefore, it is different from the government debt, and the correct option is C.

The Government Deficit