which statements accurately describe debts and deficits? select all that apply.\nthe deficit is the amount a…

which statements accurately describe debts and deficits? select all that apply.\nthe deficit is the amount a government spends above what it brings in.\nthe governments debt represents how much it owes from borrowing to pay for expenditures.\ndeficits cause debt to decrease.\ndeficits cause debt to increase.\ndebt is free and has few consequences for the government.\ndebt requires a government to pay back more than it has borrowed.

which statements accurately describe debts and deficits? select all that apply.\nthe deficit is the amount a government spends above what it brings in.\nthe governments debt represents how much it owes from borrowing to pay for expenditures.\ndeficits cause debt to decrease.\ndeficits cause debt to increase.\ndebt is free and has few consequences for the government.\ndebt requires a government to pay back more than it has borrowed.

Answer

Brief Explanations:

  1. A deficit occurs when government spending exceeds revenue, so the first statement is correct.
  2. Debt is the cumulative amount borrowed by the government to cover expenditures, making the second statement accurate.
  3. Deficits lead to more borrowing, thus increasing debt, so the fourth statement is right and the third is wrong.
  4. Debt usually has interest, meaning the government pays back more than borrowed, so the sixth statement is correct. Debt is not free and has significant consequences, making the fifth statement incorrect.

Answer:

The deficit is the amount a government spends above what it brings in. The government's debt represents how much it owes from borrowing to pay for expenditures. Deficits cause debt to increase. Debt requires a government to pay back more than it has borrowed.