The budget of an economy is said to be in deficit when:

A) federal outlays exceed revenues.
B) federal revenues exceed outlays.
C) anticipated inflation rate exceeds its actual rate.
D) there is a loss of value of a country's currency with respect to one or more foreign reference currencies.
E) anticipated interest rate exceeds its actual rate.

Budget Deficit

The financial situation in which expenditures exceed revenue over a specific period, leading to a shortfall that must be financed through borrowing.

Federal Outlays

Government expenditures, including spending on goods and services, transfer payments, and interest on debt.

Revenues

The total income generated by a business or government from its activities, before any expenses are subtracted.