Economics · Revenue Deficit
Which of the following describes the dual implication of persistent revenue deficits?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Reduction in government debt with high economic growth.
- 2An increase in tax revenue with no increase in expenditure.
- 3Instant creation of productive assets with low repayment obligations.
- 4Future repayment obligations without the creation of productive assets.✓
Correct answer
Future repayment obligations without the creation of productive assets.
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