The Difference Between the Government Debt and the Budget Deficit

question 181

Multiple Choice

The difference between the government debt and the budget deficit is

• A) the budget deficit shows the annual discrepancy between government spending and tax revenue and the government debt shows the accumulated balance of past government debts.
• B) the government debt shows the annual discrepancy between government spending and tax revenue and the budget deficit shows the accumulated balance of past government debts.
• C) not significant because both move in the same direction.
• D) none.

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