When government spending exceeds government revenues during a given period of time
A) a budget deficit exists.
B) a budget surplus exists.
C) the national debt must be decreasing.
D) Congress is obliged to raise taxes.

Question

Quizplus · Accepted Answer

A budget deficit exists when government spending exceeds government revenues during a given period of time. This means that the government is spending more money than it is bringing in, leading to a negative balance.

When Government Spending Exceeds Government Revenues During a Given Period