Answer: C. Government revenues fall short of government spending
Explanation: A budget deficit is a situation when spending exceeds income. It could be because of a financial loss during a period where expenses exceed revenues. The term in general is used for governments, although individuals, companies, and other organizations can run under deficits too. There are numerous situations that can cause spending to exceed revenue. For example, during recessions governments also lose revenue. As workers lose jobs, there aren't enough taxes coming in. Spending can easily outpace revenue if the consequences of debt aren't too painful.
