Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
$100 billion
B
$200 billion
C
$300 billion
D
$400 billion
Understanding the Answer
Let's break down why this is correct
Answer
A budget deficit happens when a government spends more money than it earns. In this case, the government spends $500 billion but only earns $400 billion in revenue. To find the budget deficit, you subtract the total revenue from the total spending. So, you take $500 billion and subtract $400 billion, which gives you $100 billion. This means the government has a budget deficit of $100 billion, meaning it needs to borrow that amount to cover its expenses.
Detailed Explanation
The budget deficit is the amount spent minus the money earned. Other options are incorrect because This answer might come from thinking the deficit is half of the spending; Some might think this is the leftover money after spending.
Key Concepts
government spending
Topic
Calculating Budget Deficits
Difficulty
easy level question
Cognitive Level
understand
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