When government expenditures are greater than tax revenues
A) there will be budget deficit.
B) there will be budget surplus.
C) automatic stabilizers do not kick in.
D) the public debt will be reduced.

Question

Quizplus · Accepted Answer

When government expenditures are greater than tax revenues, it means that the government is spending more money than it is receiving in revenue. This creates a budget deficit, which means that the government will need to borrow money to cover its expenses. This can result in the accumulation of public debt over time.

When Government Expenditures Are Greater Than Tax Revenues