when the federal government is running a budget deficit: a. the size of the national debt will decline. b. the economy must be in an economic recession. c. government expenditures exceed government tax revenues. d. government tax revenues exceed government expenditures.

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19-12-2022
Business

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when the federal government is running a budget deficit: a. the size of the national debt will decline. b. the economy must be in an economic recession. c. government expenditures exceed government tax revenues. d. government tax revenues exceed government expenditures.

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contexto1019 contexto1019 · Answer 1 · 2022-12-24T03:01:52-05:00

The correct answer is option C. When the federal government is running a budget deficit, government expenditures exceed government tax revenues.

A budget deficit occurs when a government's expenditures are greater than its revenues over a given period of time. This can happen when the government is spending more money on programs and services than it is collecting in taxes and other forms of revenue.

When the federal government is running a budget deficit, it may need to borrow money to fund its operations. This can increase the size of the national debt, which is the total amount of money that the government owes to its creditors.

Learn more about A budget deficit here:

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