3. Debt and Deficit -Borrowing money affects both debt and deficit
-Budget deficits add to debt
-Debt and deficit contribute to unbalanced budgets
Debt
-The sum of all the
government borrowing
up to that time, minus
the borrowings that
have been repaid
-The total of all deficits
and surpluses
Deficit
-The amount of money
the government borrows
for one budget,
representing
one fiscal year
-Can rise or fall because
of forces beyond the
government’s control

6. Debt and Deficit -Borrowing money - -Debt and deficit Debt
-The of all the government
up to that time, minus
the that -
Deficit
-The amount of
the government
for one ,
representing
-Can because
of forces the
government’s