Question

A deficit

a. is necessary for government to run effectively.
b. is a way of billing future taxpayers for todays spending.
c. indicates the government is owed money.
d. is always followed by a balanced budget.

Answer 1

A deficit is the annual budget shortfall between revenues and expenditures. When a government spends more money than it collects in taxes, it runs a budget deficit. This deficit means that the government will need to borrow money to finance its spending.

Step-by-step explanation:

A deficit is the annual budget shortfall between revenues and expenditures. When a government spends more money than it collects in taxes, it runs a budget deficit. This deficit means that the government will need to borrow money to finance its spending.