Economics · Public Finance
Consider the following statements regarding Budget Deficit and fiscal management: (A) Governments generally undertake market borrowings to finance their budget deficits. (B) Borrowing from the domestic public to finance a budget deficit is effectively a transfer of purchasing power from the public to the Government. Codes:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Both (A) and (B) are incorrect
- 2Both (A) and (B) are correct✓
- 3Only (B) is correct
- 4Only (A) is correct
Correct answer
Both (A) and (B) are correct
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