Economics · Public Finance
Why is a persistent revenue deficit considered a major concern for an economy?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1It increases productive, asset-building investments.
- 2It improves the country's international trade surplus.
- 3It indicates that the government is borrowing to finance daily consumption expenditure.✓
- 4It boosts physical infrastructure and capital asset creation.
Correct answer
It indicates that the government is borrowing to finance daily consumption expenditure.
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