Budget deficit and Inflation

What is the difference between a budget deficit and a budget surplus?

• A budget deficit is when government spending exceeds tax revenues, while a budget surplus is when tax revenues exceed gov spending

• A budget deficit is when tax revenues exceed government spending, while a budget surplus is when government spending exceeds tax revenues.

• A budget deficit and a budget surplus both represent a situation where tax revenues exceed government spending

• A budget deficit and a surplus both represent a situation where gov spending exceeds tax revenues

Budget deficits tend to rise in a recession because of (select 3 options)

• Business bankruptcy

• Increased means tested transfer payments

• Progressive income tax

• Higher VAT receipts

The relationship between deficits and debts is

• When budget deficits get smaller, the debt gets smaller

• When budget deficits get bigger, debt rises more slowly

• When budget deficits fall to zero, the debt disappears

• When the budget deficit rises, debt rises more quickly

The money that the government borrows and needs to pay back is called ________.

• Expenditures

• Income

• National Debt

• Exchange Rates

The government has to set one of these each year. It is a plan for how they will spend their money

• Checkbook

• Budget

• Monetary Policy

• Deficit

The US budget is funded by...

• Taxes

• Expenditures

• Income

• Debt

Other than taxes, how can US citizens fund the national budget?

• Buying government bonds

• Tax evasion

• Writing a check

• By taking advantage of banking programs

Who does the government tax?

• Individuals and Businesses

• Other Countries

• Illegal Aliens

• Only US Citizens

How does the government get into debt?

• They run too many budget deficits

• They run too many budget surpluses

• Surpluses and deficits equal out

• Their surpluses are greater than their deficits.

What is a budget deficit?

• When the government goes over budget

• When the government stays under budget