India Exam Junction

14. Public expenditure in excess of public revenue is defined as:

  1. Reduced Financing        

  2. Debt Crises

  3. Deficit Financing    

  4. Economic lag

Correct Answer :

Deficit Financing    

Solution

Deficit financing occurs when public expenditure exceeds public revenue, and the government borrows funds or prints money to bridge the gap, often to stimulate economic growth or cover fiscal shortfalls.

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