With respect to deficits,__________.

Question

Quizplus · Accepted Answer

A budget deficit refers to the situation where a state's spending exceeds its revenue, leading to a shortfall that must be financed by borrowing or printing money. On the other hand, a trade deficit occurs when a country imports more goods and services than it exports, leading to a shortfall in its balance of payments. These two concepts are distinct, and it is possible for a state to have a trade deficit without having a budget deficit, and vice versa. Thus, option D is the correct answer.

With Respect to Deficits,__________