Which of the following statements accurately describe the implications of a budget deficit on a nation's economy? Select all that apply.

A budget deficit occurs when a government spends more money than it earns through taxes and other revenue. This situation can lead to increased borrowing, as the government may need to take loans to cover its expenses. Over time, a budget deficit can result in higher national debt, which means the government has to pay more interest, potentially limiting its ability to fund important programs like education or healthcare. For example, if a country continues to run a deficit, it might have to borrow money to pay for schools, leading to less funding for teachers and resources. Therefore, while a budget deficit can stimulate the economy in the short term, it can create long-term challenges for the nation’s financial health.