Question

In the country of Econoville, tax revenue collected by the government this year is $12 million, and government outlays are $15 million. This country currently has a Choose one: A. budget surplus of $27 million. B. budget surplus of $3 million. C. budget deficit of $15 million. D. balanced budget. E. budget deficit of $3 million.

Answer 1

E. budget deficit of $3 million.

Step-by-step explanation:

if government spending exceeds revenue from tax, there is a budget deficit

if government spending is less than revenue from tax, there is a budget surplus

government outlays exceeds tax revenue by $3 million. there is a deficit of $3 million