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A government budget proposing to spend more than its expected revenue in a year will...

Economics
JAMB 2016

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
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Correct Answer: Option D
Explanation

When the government spends more than it collects, a budget deficit exists.

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Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts