Which of the following best defines the term balanced budget? Select the correct answer below: A balanced budget is a financial situation in which the federal government spends more money than it receives in taxes in a given year. A balanced budget is a financial policy that decreases the level of aggregate demand. A balanced budget is a tax or spending rule that has the effect of slowing down or speeding up the rate of change in aggregate demand without any additional change in legislation. A balanced budget is a financial situation in which government spending and taxes are equal