An "excessive" budget deficit in this context is

a. a relatively large budget deficit as a percentage of gdp beyond the european union's deficit and debt rules.
b. a budget deficit that has bankrupted the government.
c. a budget deficit that inevitably forces a bond rating agency to lower the rating on the country's debt.
d. a budget deficit that makes the economy grow by increasing income and employment.

A) A relatively large budget deficit as a percentage of GDP beyond the European Union's deficit and debt rules.

Explanation:

A budget deficit is when the governments have more expenditures in a budgeted year than they have the revenues in form of taxes and other incomes. A deficit is excessive if it is large in comparison to the GDP.

In the European Union the budget deficit is considered excessive if it exceeds 3% of the running years GDP.

A public debt percentage to GDP of 60% or above is considered excessive as most of the GDP then is used for debt servicing and thus impacts negatively on the financial health of the country.

Hope that helps.

answer; encouraging the development of innovations by firms attempting to break a monopoly; (creative destruction)