If the government has a spending flow that exceeds the revenues it collects, the government will run a ________ that year.
A) debt
B) deficit
C) debt and a deficit
D) surplus

Question

Quizplus · Accepted Answer

A deficit occurs when the government's spending exceeds the revenues it collects in a given year. This means that the government is not able to balance its budget and is instead accumulating debt.

If the Government Has a Spending Flow That Exceeds the Revenues