Explain the difference between the debt and the deficit and the importance of both to economic policy. ?
- JuanBLv 74 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
- OiyLv 64 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.