1982, the total expenditure of the government of Kargenia, a European country, exceeded its revenue by a substantial amount. This forced the government of
argenia to borrow funds to meet its legal obligations. In this scenario, the government of Kargenia incurred a_
in 1982.
a. budget deficit
Ob. debt brake
O c. fiscal drag
O d. revenue backlog

Answers

Answer 1

Answer:

a. budget deficit

Explanation:

In the scenario described, where the total expenditure of the government of Kargenia exceeded its revenue, forcing the government to borrow funds, the term that describes this situation is a "budget deficit."

A budget deficit occurs when a government's total spending exceeds its total revenue or income. To cover the shortfall, the government typically borrows money by issuing debt securities, such as bonds. The budget deficit represents the amount by which the government's expenditures exceed its revenues in a given period, usually a fiscal year.


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