The Difference Between the Government Debt and the Budget Deficit

The difference between the government debt and the budget deficit is

A) the budget deficit shows the annual discrepancy between government spending and tax revenue and the government debt shows the accumulated balance of past government debts.
B) the government debt shows the annual discrepancy between government spending and tax revenue and the budget deficit shows the accumulated balance of past government debts.
C) not significant because both move in the same direction.
D) none.

Correct Answer:

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