Public expenditure creates expansionary effects in the economy when it is

a

in excess of government revenue

b

channelled into capital products

c

diverted into imports

d

financed through part of the year's total collection of taxes

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Correct Option
b

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colikstan
3 years ago

The answer is A
When expenditure is more than revenue there is budget deficit. More money is fused into the economy by financing this deficit. And the finance is an expansionary monetary policy

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