WBCS.LIVE practice question

In which of the following situations does the government run a deficit budget?

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. When the government expenditure and revenue both are zero.
  2. When the government expenditure exceeds revenue.
  3. When the government expenditure equals revenue.
  4. When the government revenue exceeds expenditure.

Correct answer and explanation

Correct answer: When the government expenditure exceeds revenue.