Federal budget deficits occur whenInterest payment on national debt increase from one year to the next.High level of unemployment uses up tax collections.Federal government spends more money than it collects in taxes in a given year.More money is being spent by the government than it was being allocated. 22. Federal budget deficits occur whenA. Interest payment on national debt increase from one year to the next.B. High level of unemployment uses up tax collections.C. Federal govermment spends more money than it collects in taxes in a given year.D. More money is being spent by the government than it was being allocated.

22) Federal budget deficit means when the expenditure is more than the revenue. The government gets revenue in form of taxes while it spends in form of government spendings. So when the federal government spends more money than it collects from taxes, it is federal budget deficit. Answer is option C)

Answered: Federal budget deficits occur when…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Federal budget deficits occur when
1. Interest payment on national debt increase from one year to the next.
2. High level of unemployment uses up tax collections.
3. Federal government spends more money than it collects in taxes in a given year.
4. More money is being spent by the government than it was being allocated.

22. Federal budget deficits occur when
A. Interest payment on national debt increase from one year to the next.
B. High level of unemployment uses up tax collections.
C. Federal govermment spends more money than it collects in taxes in a given year.
D. More money is being spent by the government than it was being allocated.

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