If the federal government spends more than it collects in revenue, then

A) it is running a surplus.

B) it is running a deficit.

Eliminate

C) the inflation rate should decline.

D) the unemployment rate may increase.

The government could be running a deficit more when it spends more than the amount it collects from tax revenue. It is the opposite of a budget surplus wherein the national debt of the government would continue to increase unless there would be a balance in their spending with respect to the tax revenue collected.