Question

Which statements accurately describe debts and deficits? Select all that apply. The deficit is the amount a government spends above what it brings in. The government’s debt represents how much it owes from borrowing to pay for expenditures. Deficits cause debt to decrease. Deficits cause debt to increase. Debt is free and has few consequences for the government. Debt requires a government to pay back more than it has borrowed.

Answer 1

Answer:

The deficit is the amount a government spends above what it brings in. Deficitis cause debt to increase. Debt requires a government to pay back more than it has borrowed.

Explanation:

A Public deficit can be defined as the consequence of the excess of government expenses compared with the amount of revenue or income. When the government waste more money than the planned budget it tends to get into debts (that's why deficits cause debt to increase). As normally happens, the adquisition of debt requires to pay back more than is borrowed due to interest charged by creditors

Answer 2

Answer:

The deficit is the amount a government spends above what it brings in.

Deficitis cause debt to increase.

Debt requires a government to pay back more than it has borrowed.

The government’s debt represents how much it owes from borrowing to pay for expenditures.