If the government spends more than it receives in taxes during a given interval, then the result is
A) a balanced budget.
B) the gross public debt.
C) the net public debt.
D) a government budget deficit.

Question

Quizplus · Accepted Answer

When a government spends more than it receives in taxes during a given interval, it leads to a budget deficit. This means that the government's expenses exceed its revenue, resulting in a shortfall that must be financed by borrowing or printing money.

If the Government Spends More Than It Receives in Taxes