Which of the following statements about the budget deficit is true?
A) It is a stock variable.
B) It is a flow variable.
C) It is equal to the public debt.
D) None of the above.

Question

Quizplus · Accepted Answer

The budget deficit is a flow variable as it measures the difference between government spending and government revenues over a certain period of time, usually a fiscal year. A stock variable, on the other hand, represents a cumulative amount at a specific point in time, such as the public debt. Therefore, options A and C are incorrect. Option D is also incorrect, as there is a correct answer among the given options.

Which of the Following Statements About the Budget Deficit Is