Which statement describes a deficit?

Which statement describes a deficit?

• A. Surplus
• B. Deficit
• C. More Money Is Spent Than Comes In
• D. Forecasts

Answer: (C)

Deficit means spending exceeds income. The statement “More money is spent than comes in” describes that exact shortfall, where outflows exceed inflows and money is needed from savings, borrowing, or reserves to cover the gap. A surplus is the opposite—income exceeds spending. Forecasts are just predictions about future results, not the current condition of spending versus income. For example, spending $3,500 when you earn $3,000 creates a $500 deficit.

Deficit means spending exceeds income. The statement “More money is spent than comes in” describes that exact shortfall, where outflows exceed inflows and money is needed from savings, borrowing, or reserves to cover the gap. A surplus is the opposite—income exceeds spending. Forecasts are just predictions about future results, not the current condition of spending versus income. For example, spending $3,500 when you earn $3,000 creates a $500 deficit.