A government budget proposing to spend more than its expected revenue in a year will create_______?
a
Opportunity for combating inflation
b
Depression in the economy
c
Shortage in money supply
d
Opportunity for full employment
Explanation
Correct Option
dVideo Explanation
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Iember_codes
3 years ago
For you guys saying it's C, you are wrong. Budget deficit actually increases the money supply because the government will increase the money supply in order to pay off the debt.
So, the correct answer is D because a budget deficit means government is spending more than it's revenue and this spending is injected into the economy thereby creating jobs. If you know the multiplier effect you should understand
