| Deficit & Debt Example | |||||||||
| Define some terms: | |||||||||
| Surplus: revenue > expenditures | |||||||||
| Deficit: expenditures > revenue | |||||||||
| Debt: What you owe | |||||||||
| Surplus reduces debt | |||||||||
| Deficit increases debt | |||||||||
| Surplus: revenue ($10) > expenditures ($8) | |||||||||
| Debt is reduced by $2 | |||||||||
| Deficit: expenditures ($10) > revenue ($8) | |||||||||
| Debt is increase by $2 | |||||||||