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.

A deficit occurs when a government spends more than it receives in revenue, so A is accurate. Debt is the total amount the government owes from borrowing, making B accurate. When a government runs a deficit, it generally must borrow to cover the shortfall, adding to its debt, so D is accurate. Borrowing also requires repayment of the borrowed amount plus interest, so F is accurate; debt is not free, and deficits do not reduce debt.

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