Which of the below statements is INCORRECT about budget deficits and surpluses? Group of answer choices An economy should steer clear of deficit budgets even during economic recessions. If an economy slips into a recession, tax revenues will fall, but raising taxes will certainly worsen the situation. A budget deficit is funded by borrowing money by selling treasury bonds, which requires the government to pay back the interest on the amount borrowed, plus the principal borrowed. Since 2001 the U.S. has been consistently spending more than the tax revenue is collected, and the amount borrowed plus interest owed has been accumulating to a rather large national debt. A budget deficit occurs when the government spends more than it collects in tax revenues
Which of the below statements is INCORRECT about budget deficits and surpluses?
Group of answer choices
An economy should steer clear of deficit budgets even during economic recessions.
If an economy slips into a recession, tax revenues will fall, but raising taxes will certainly worsen the situation.
A budget deficit is funded by borrowing money by selling treasury bonds, which requires the government to pay back the interest on the amount borrowed, plus the principal borrowed.
Since 2001 the U.S. has been consistently spending more than the tax revenue is collected, and the amount borrowed plus interest owed has been accumulating to a rather large national debt.
A budget deficit occurs when the government spends more than it collects in tax revenues.
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