Asked in PPSC, FPSC and other one-paper exams (compiled from unofficial resources).
Political Science, Law, Economics & Current AffairsEconomics & Trade Terms
What does the economic term 'deficit financing' imply?
- A.Government borrows only from foreign sources
- B.Government revenue exceeds expenditure
- C.Balanced government budget
- D.Government spends more than revenueCorrect answer
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Practice these MCQs in the appQuick fact: Deficit financing implies that the government spends more than its revenue, covering the gap through borrowing or printing money.