Which of the following budgets will increase government e...
Which of the following budgets will increase government expenditure?
Zero base budget
Surplus budget
Deficit budget
Balanced policy
Correct answer is C
A budget deficit is the annual shortfall between government spending and tax revenue. The deficit is the annual amount the government need to borrow to balance up the budget. When the government borrows, it offers to pay interest payment to those who the money was borrowed. The deficit is also funded by selling government bonds to private sector to do this, the government offers to pay an interest payment to those who buy the bonds. The interest rate attracts investors to lend the government money.
Any price below the equilibrium price will lead to ...
If the supply curve of labour market is given as S = 4L + 8. What is L when s = 20? ...
Economic growth takes place when there is an increase in ...
Balance of payment surplus implies that receipts for exports are ...
The "velocity" of money is ...
Modern international trade is based on the principle of ...
Which of the following statements about population is correct? ...
The effectiveness of devaluation as a solution to a balance of payments problem depends on the ...