Which option offers the best explanation for the difference between the budget deficit and the national debt? A) The budget is t
he annual expenditures of the federal government, while the national debt is the money owed each year. B) The budget deficit is when the government spends more than is collected as revenue in a single year, while the national debt is the total amount of money owed by the government. C) The budget deficit is the amount of expenditures budgeted, while the national debt is the money spent over the annual budget. D) The budget deficit is the total amount of money owed by the federal government, while the national debt is the money owed.
A budget deficit is the difference between what the federal government spends and what is its revenues.
The national debt arises as a result of the federal government borrowing money to cover years and years of budget deficits.
So, the best option is B) The budget deficit is when the government spends more than is collected as revenue in a single year, while the national debt is the total amount of money owed by the government.
