Question

Deficit budget means _____.

• A. the government spends more than its revenue
• B. the government earns more than its expenses
• C. the government imports more than its exports
• D. none of the above

Answer 1

Answer: (A)

the government spends more than its revenue

A budget deficit is an indicator of financial health in which expenditures exceed revenue. The term budget deficit is most commonly used to refer to government spending rather than business or individual spending, but can be applied to all of these entities.