A revenue deficit means that the government

spends nothing on capital goodsCorrect answerYour answercollects more revenue than it spendsCorrect answerYour answerhas no debtCorrect answerYour answerborrows to pay for its day-to-day spendingCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer D

Correct answer: D

Revenue spending creates no assets. Financing it by borrowing adds debt without adding assets to repay it from.

Concept: Meaning of revenue deficit
Typical timeTypical: 70 s
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The rule this testsRevenue deficit

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A revenue deficit means that the government

Explanation