WBCS.LIVE practice question

What does a budget deficit indicate?

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

Answer options

  1. Government spending exceeds government revenue
  2. Government revenue exceeds government spending
  3. The government is saving for future projects
  4. The government is not allocating enough funds for public services

Correct answer and explanation

Correct answer: Government spending exceeds government revenue