When the Government's Expenditures Exceed Its Tax Revenue,the Budget

Multiple Choice

When the government's expenditures exceed its tax revenue,the budget

A) has a deficit and the national debt is increasing.
B) is balanced and the national debt is increasing.
C) has a surplus and the national debt is increasing.
D) has a deficit and the national debt is decreasing.
E) None of the above because by law the government's expenditures cannot exceed its tax revenue.