Which of the following describes a budget deficit?

A. Expenses lower than income
B. Expenses higher than income
C. Savings lower than expenses
D. Savings higher than income

Question

30-07-2024
Business

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Which of the following describes a budget deficit?

A. Expenses lower than income
B. Expenses higher than income
C. Savings lower than expenses
D. Savings higher than income

Sagot :

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GinnyAnsweridn GinnyAnsweridn · Answer 1 · 2024-07-30T12:36:40-04:00

GinnyAnsweridn GinnyAnsweridn

30-07-2024

Final answer:

A budget deficit happens when government spending surpasses revenues, resulting in an annual budget shortfall.

Explanation:

Budget deficit occurs when government expenditures exceed revenues. It is the annual budget shortfall between revenues and expenditures. The deficit equals government purchases minus net tax receipts.

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