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Questions and Answers
What does a budget deficit indicate?
What does a budget deficit indicate?
- Government revenue being completely utilized
- Government revenue exceeding government spending
- Government spending exceeding government revenue (correct)
- Government spending equal to government revenue
How can a government finance a budget deficit?
How can a government finance a budget deficit?
- Reducing public spending
- Reducing taxes
- Issuing bonds (correct)
- Increasing trade tariffs
What impact can a persistent budget deficit have on a country's economy?
What impact can a persistent budget deficit have on a country's economy?
- Reduction in inflation rates
- Strengthening of the national currency
- Decreased unemployment rates
- Increased government debt and interest payments (correct)
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