What is a government budget deficit, and how does it affect long-term economic growth?

A budget deficit occurs when government spending exceeds revenue, leading to increased borrowing and potentially stunted long-term economic growth due to higher interest rates.

A budget deficit occurs when government spending equals revenue, having no impact on long-term economic growth.

A budget deficit occurs when government revenue exceeds spending, leading to increased savings and enhanced long-term economic growth.

A budget deficit occurs when government spending is less than revenue, leading to decreased borrowing and stunted long-term economic growth.