Question

What is the difference between the federal budget deficit and federal government​ debt?

A. The federal budget deficit is the​ year-to-year surplus in tax revenues relative to government spending ​ (T > G​ + TR), financed through government bonds. The federal government debt is the accumulation of all past deficits.
B. The federal budget debt is the​ year-to-year short fall in tax revenues relative to government spending ​ (T < G​ + TR), financed through government bonds. The federal government deficit is the accumulation of all past debts.
C. The federal budget deficit is the​ year-to-year short fall in tax revenues relative to government spending ​ (T < G​ + TR), financed through government bonds. The federal government debt is the accumulation of all past deficits.
D. The federal budget deficit is the​ year-to-year short fall in tax revenues relative to government spending ​ (T < G​ + TR), financed through corporate bonds. The federal government debt is the accumulation of all past deficits.

Answer 1

c. The federal budget deficit is the​ year-to-year short fall in tax revenues relative to government spending ​ (T < G​ + TR), financed through government bonds. The federal government debt is the accumulation of all past deficits.

Step-by-step explanation:

The difference between the federal budget deficit and federal government​ debt is that the federal budget deficit is the​ year-to-year short fall in tax revenues relative to government spending ​ (T < G​ + TR), financed through government bonds. The federal government debt is the accumulation of all past deficits.

Answer 2

C. The federal budget deficit is the​ year-to-year short fall in tax revenues relative to government spending ​ (T < G​ + TR), financed through government bonds. The federal government debt is the accumulation of all past deficits.

Step-by-step explanation:

The difference between the federal budget deficit and federal government​ debt is that the federal budget deficit is the​ year-to-year short fall in tax revenues relative to government spending ​ (T < G​ + TR), financed through government bonds. The federal government debt is the accumulation of all past deficits.