What is budget deficit, fiscal deficit and revenue deficit?
Fiscal and Monetary Policy:
Fiscal policy is the policy carried out by the government through the spending and revenue decisions in the government's budget. Often, federal spending exceeds the revenue they collect.
Answer and Explanation:
A budget deficit is a loss that the government incurs when it's spending exceeds the revenue it collects from taxes. Fiscal deficit also includes money borrowed and interest accrued from borrowing that interest. Therefore, fiscal deficit is larger than the budget deficit. Finally, revenue deficit is when the amount of revenue that is actually collected by the government is less than the amount of revenue they expected to collect.
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Learn more about this topic:
from College Macroeconomics: Tutoring SolutionChapter 11 / Lesson 14