Question:

What is deficit (34-40)words

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What is deficit (34-40)words

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  1. i guess you are talking about fical defict

    A budget deficit occurs when an entity (often a government) spends more money than it takes in. The opposite is a budget surplus.

    The size of a governmental budget deficit is often an important political issue as well as one of economic policy. Fiscal conservatives denounce deficit spending and advocate balanced budgets. Keynesians argue that under some circumstances, deficit spending is justified. "Starve-the-beast" strategies usually lead to high budget deficits.

    An accumulated deficit over several years (or centuries) is referred to as the government debt. Often, a certain part of spending is dedicated to paying of debt with certain maturity, which can be refinanced by issuing new government bonds. That is, a fiscal deficit leads to an increase in an entity's debt to others. A deficit is a flow. And a debt is a stock. Debt is essentially an accumulated flow of deficits.

    Any deficit must, ultimately, be repaid, either through taxation, or seignorage. The Ricardian equivalence hypothesis states that this means a public deficit is exactly the same as a tax rise.

    The existence of a deficit has in some cases led to the existence of a capital market and been a great benefit to economic activity.

    A formula to calculate debt is:

    Debt = RBt-1 + (r-g)Gt - Tt

    R= real interest rate.

    Bt-1= Debt of last year.

    r = Interest Rate

    g= growth rate

    Gt= Government Spending

    Tt = Tax Revenue.


  2. A deficit is losing money (You had 1000 euro at the start of the month and  aftter all expenses and Wages you have 900) you have lost 100 euro... the deficit is €100

    Hope i helped but its a bit many words :P

  3. Less than what's required  

  4. If you make 1000 rupees a month and spend 1250 rupees, then you have a deficit. Whenever your income is less than your expenditure, you are financially deficit. A deficit need not be financial only. One could have a deficiency mentally, biologically, socially etc.

  5. lacking or deficit

  6. in business and accounting a deficit is an excess of expenditure over income.

    just for the record; an excess of income over expenditure is a surplus

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