16
practice testMultiple Choice

Practice Test

Question 16 • Economics

High government expenditures can lead to a bigger

Answer
A
stimulus.
B
deficit.
C
surplus.
D
revenue.

Explanation

A government has a deficit when it spends more than it collects in revenue. If government expenditures rise while revenue does not rise enough to cover them, the gap between spending and revenue grows, creating a bigger deficit. A surplus, by contrast, occurs when revenue exceeds spending.

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