Practicing Success
When the expenditure exceeds income, how does the government finance its deficit? |
Borrowing from the public Borrowing from international financial institutions Borrowing from banks All of the above |
All of the above |
When expenditure exceeds income, the government finances the deficit through various means including borrowing from public, banks, international financial institutions. The government also involves itself in selling of securities such as treasury bonds etc. in order to raise money. |