When the Government's Expenditures Exceed Its Revenues, the Budget

question 75

Multiple Choice

When the government's expenditures exceed its revenues, the budget

• A) is balanced and the national debt is increasing.
• B) has a deficit and the national debt is decreasing.
• C) has a surplus and the national debt is increasing.
• D) has a deficit and the national debt is increasing.
• E) None of the above because by law the government's expenditures cannot exceed its tax revenue.

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Definitions:

Regulatory Violation

The act of failing to follow rules or regulations set by governmental or regulatory agencies.

Search and Seize

Legal procedures used by law enforcement where they search a person or property and confiscate any relevant evidence to a crime.

Executive Agency

A government department or unit under the direct control of the executive branch, responsible for implementing government policy and administration.

Subpoena Duces Tecum

A court order requiring a person to produce documents or records for a legal proceeding.