Question

A budget deficit:A. occurs when government expenditures exceed tax revenues. B. occurs when tax revenues exceed government expenditures. C. occurs when transfer payments exceed tax revenues. D. will always result when Congress and the president cannot agree on expenditures. E. occurs when monetary policy works in the opposite direction of fiscal policy.

Answer 1

Answer:

A. occurs when government expenditures exceed tax revenues.

Explanation:

A budget deficit is about expenses exceed revenue.

For government almost the revenues is from tax revenues, while the expense is for many purposes.