PPSC PAST PAPER 60

Deficit financing is an economic term which implies:

  • Subject:  GENERAL KNOWLEDGE
  1. Government spends more money than it receives as revenue
  2. Government spends less money than it receives as revenue. Government spends the same amount of money which it receives in revenue
  3. Government borrows from the central bank of the cuntry
Correct Answer: Government spends more money than it receives as revenue