Asked by Bertrand Veronique on May 10, 2024
Verified
The budget of an economy is said to be in deficit when:
A) federal outlays exceed revenues.
B) federal revenues exceed outlays.
C) anticipated inflation rate exceeds its actual rate.
D) there is a loss of value of a country's currency with respect to one or more foreign reference currencies.
E) anticipated interest rate exceeds its actual rate.
Budget Deficit
The financial situation in which expenditures exceed revenue over a specific period, leading to a shortfall that must be financed through borrowing.
Federal Outlays
Government expenditures, including spending on goods and services, transfer payments, and interest on debt.
Revenues
The total income generated by a business or government from its activities, before any expenses are subtracted.
- Comprehend the economic repercussions of budget deficits and surpluses.
Verified Answer
Learning Objectives
- Comprehend the economic repercussions of budget deficits and surpluses.
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