Question

A government budget deficit is________.

A. a situation in which the government's spending is exactly equal to the total taxes and other revenues it collects during a given time period.
B. the total value of all outstanding federal government securities.
C. all federal government debt irrespective of who owns it.
D. an excess of government spending over government revenues during a given time period.

Answer 1

D. an excess of government spending over government revenues during a given time period.

Step-by-step explanation:

A government deficit describes a situation where the government's expenditure exceeds the total revenue collected. The government's primary source of income is through taxation. A deficit arises as a result of government policy or the occurrence of unexpected events.

A government may finance the budget deficit by borrowing funds from the local market or international lenders. It may also issue bonds or treasury bills. The government may also cut down on its expenses, or raise taxes to address the budget deficit.