A government budget deficit occurs during a budget year when A) tax revenues government spending. B) tax revenues = government spending. C) tax revenues

Question

A government budget deficit occurs during a budget year when
A) tax revenues > government spending.
B) tax revenues = government spending.
C) tax revenues < government spending.
D) tax revenues + government spending = personal consumption.

Quizplus · Accepted Answer

A budget deficit occurs when the government spending exceeds the tax revenues it collects during a budget year. Therefore, tax revenues < government spending results in a budget deficit. Option A would be a budget surplus and Option B would be a balanced budget. Option D is not relevant to the question as it refers to personal consumption, which is not directly related to government finances.

A Government Budget Deficit Occurs During a Budget Year When