google bot detected Budget Deficit | Insurance Glossary |

Budget Deficit

Definition of "Budget deficit"

Dave  Bowen
  RE/MAX Town & Country

Circumstance resulting when government expenditures exceed government income. To finance this difference, the United States Treasury will auction Treasury bills, notes, and bonds. In order to attract investors such as insurance companies, the Treasury will pay higher interest rates on the new issues, resulting in a decline in bond (already issued) prices and the increase in their rates.

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