The Difference Between a Budget Deficit and Government Debt Is

Multiple Choice

The difference between a budget deficit and government debt is that:

A) a deficit is the amount by which government spending exceeds tax revenues, whereas debt is the sum of money the government owes.
B) debt is the amount by which government spending exceeds tax revenues, whereas a deficit is the sum of money the government owes.
C) a deficit is measured as of a particular time, whereas debt is measured over time.
D) a deficit harms the economy, whereas debt improves the economy.