Question

A federal budget deficit occurs when _____ Group of answer choices aggregate supply is greater than aggregate demand. aggregate demand is greater than aggregate supply. there is deflation. federal government purchases exceed net taxes. there is inflation.

Answer 1

A federal budget deficit occurs when federal government purchases exceed net taxes. Option C is correct.

What is federal budget?

The federal budget is the budget of the United States. It comprises the federal government's spending and revenues.

The budget is the monetary or medium of exchange expression of the  priorities of the government and showing the past conflicts and conflicting economic views.

A federal budget deficit occurs when government spending exceeds revenue, which is the money collected from, fees, taxes and investments. Deficits add to the national debt, or debt owed by the federal government.

Therefore, option C is correct.

Learn more about the federal budget, refer to:

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