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Budget Deficits · Question 49 of 51

Question 49

MediumOriginal question

When a revenue deficit is financed by borrowing, the government is

Options for question 49

Show the answer and explanation
CorrectNot quiteAnswer D

Correct answer: D

Explanation

  1. Revenue spending is current consumption by the government. Borrowing for it means negative government saving.

Concept
Government dissaving
Typical time
70 s
Your time
—
The rule this testsWhat deficits do
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