Answer: 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 increase
Debt requires a government to pay back more than it has borrowed
Explanation:
The options include:
• 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.
Deficit occurs when the expenses of the government is more than the revenue that the economy makes. Deficit lead to a rise in the debt of the government. The debt refers to the amount that the government owes and when this occurs, the government will pay back more than it has borrowed because an interest will be added to the amount borrowed.
