Economics · Revenue Deficit
What crucial implication does a revenue deficit reflect regarding government borrowing?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The government is achieving a surplus in its tax revenue.
- 2The government is investing solely in productive infrastructure.
- 3The government is borrowing to finance operating expenses rather than investing in assets.✓
- 4The government is using all borrowed funds to pay off past debt.
Correct answer
The government is borrowing to finance operating expenses rather than investing in assets.
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