Mandy asked in Social ScienceEconomics · 4 weeks ago

Explain the difference between the debt and the deficit and the importance of both to economic policy. ?

2 Answers

  • JuanB
    Lv 7
    4 weeks ago

    National deficit is the shortfall in government spending over government revenue (eg taxes) in a year Example USA deficit $15 Billion

    National debt is the sum of all the years and total of what is owed Example USA debt $25 trillion

  • Oiy
    Lv 6
    4 weeks ago

    You might mean a budget deficit which is the case that the spending is higher than the tax revenues. If the government will borrow in full to finance the deficit, then the deficit will be equal to debts.

Still have questions? Get your answers by asking now.