Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Government Budget and Economy

Question:

"A deficit budget can never be considered a good budget."

Which of the following options is true in regards to the above statement?

Options:

The statement is true

The statement is false

Insufficient information

Can’t say anything about the statement

Correct Answer:

The statement is false

Explanation:

For a developing economy, deficit budget is good as it helps in growth of the economy. If an economy is in recession, deficit budget can help revive the economy.