Question

Which of the following statements are true regarding 'debt' and 'deficit'?

Select all that apply.
A. There is no difference between debt and deficit.
B. A deficit can be accumulated over several years.
C. A deficit occurs when our expenses exceed our revenues.
D. Debt is the money that one owes.
E. None of the above statements is true.

Answer 1

A deficit can be accumulated over several years. A deficit occurs when our expenses exceed our revenues. Debt is the money that one owes.

Step-by-step explanation:

The statements that are true regarding 'debt' and 'deficit' are:

1. A deficit can be accumulated over several years.
2. A deficit occurs when our expenses exceed our revenues.
3. Debt is the money that one owes.

The difference between 'debt' and 'deficit' lies in the time frame. The government deficit refers to what happens with the federal government budget each year, while the government debt is accumulated over time and is the sum of all past deficits and surpluses.